Sunday, August 26, 2007
Memory Chip Prices to Skyrocket
Posted by Suhit Gupta in "NEWS" @ 08:00 AM
"SOUTH KOREAN chip maker Samsung is expecting the price of memory chips to go through the roof. Chu Woo-sik, chief of Samsung's investor relations team told Associated Press that the market demand for DRAM and NAND chips is really strong. As a result the outfit can raise its contract prices. While not saying how much Samsung will increase the price of its chips, Woo-sik said that he expected the operating profit in its memory chip business to double or triple from the previous quarter. Samsung and analysts all think that the third-quarter will be the time that DRAM prices rebound. Flash memory chips and liquid crystal displays have been dropping off of late, but it looks like prices of these will pick up as well."
This seems entirely the opposite of how prices trends work when goods can take advantage of mass production. However, to some extent, memory chips are like gas prices. Now that we are hooked, companies can change prices when needed. Anyway, time will tell how this will impact the consumer goods that we buy.
This seems entirely the opposite of how prices trends work when goods can take advantage of mass production. However, to some extent, memory chips are like gas prices. Now that we are hooked, companies can change prices when needed. Anyway, time will tell how this will impact the consumer goods that we buy.
