DDR2 prices drop as inventory swells

[Apoptosis]

Not too many people are jumping on the DDR2 bandwagon and now that AMD has pushed off DDR2 memory till 2006 it looks like DRAM chipmakers are finally forced to lower prices. According to Digitimes DRAM chipmakers are sitting on up to 6 weeks of inventory! Thats a bunch of inventory in this industry! Looks like no matter how hard Intel tries to push DDR2 companies like DELL/Gateway are having a hard time selling the idea to themselves let alone consumers.

Prices for DDR2 chips have recently fallen to US$5.50 per chip from US$6.50-7.00 a month ago due to excess inventory, according to sources.

[infinitevalence]

I think this has more to do with the fact that Prescott is to some extent broken and the LG775 remains an expensive option. I have noticed a trend that MOST people upgrade when the new technology offers about a 50% increase in performance from the previous generation, hence the slow adoption of DDR2.