By Chris Holbrook, 8 August 2001 17:06
NEWS Prices in the semiconductor market have sunk so low that, if a recent study is to be believed, memory chip firms are making a loss on each one they sell.
A recent Gartner Dataquest survey has revealed that prices in comparison to production costs are at their lowest point ever.
One of the most common chips in desktop machines, a SDRAM (Synchronous Dynamic Random Access Memory) chip, has fallen 92 per cent from $18.60 to around $1.50, since July 2000.
Sarah Clements, a spokesperson with memory reseller Offtek said their turnover has slowed, but sales have increased as prices remain attractive for the consumer.
Clements added: "Margins are being squeezed. The way the market is we're all under the kosh. If we continue to sell at cost, there will be casualties."
For related news see:
Intel chief promises the chips will continue to go down
http://www.silicon.com/a46310
Analysts gloomy about Intel's prospects
http://www.silicon.com/a46329
Intel 'must refocus' to bounce back
http://www.silicon.com/a45839
Intel slashes chip prices
http://www.silicon.com/a45791
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