DRAMexchange reporting flattish contract pricing in both DRAM and NAND for the second half of March. I believe Micron’s DRAM contract pricing dropped ~5% for the same period – Micron’s has held better but has specialized DRAM in there that isn’t as market sensitive as regular DRAM. It may suggest a shortfall, or at least a price renegotiation, at Sun Micro (LAVA) whom I believe is the biggest chunk of specialized DRAM. NAND pricing was flat despite excessive reported strength in the Apple iPhone ramp.
Qimonda may receive a capital injection from Saxony. There are still too many poor DRAM companies and they’re going to resurrect this one. DRAM is still precariously poised for a difficult recovery – over-capacity is still there, just idle. Netbooks use 1/4 the memory of standard notebooks. Windows 7 allegedly requires less memory. There seem to be little to no drivers to increase DRAM per box so they’re stuck in a commoditized hell. Units are unlikely to offset the typical price declines as all the unit growth is in their least penetrated market – netbooks.