price vs. cost

Putting DRAM Prices in Perspective

DRAM Low Spot Pricing 2011-2016For almost two years there has been a lot of worry about DRAM spot prices.  This post’s graphic plots the lowest weekly spot price per gigabyte for the cheapest DRAM, regardless of density, on a semi-logarithmic scale.  (Remember that on a semi-logarithmic scale constant growth appears as a straight line.)

The downward-sloping red line on right side of the chart shows that DRAM prices have been sliding at a 45% annual rate since October 2014.  This has a lot of people worried for the health of the industry.

What most fail to remember, though, is that DRAM spot prices hit their lowest point twice in 2011, at $2.40 in August, and then $2.20 in November.  Today’s lowest DRAM spot prices have only recently dipped below the $2.52 point hit in October of 2014.

The black dotted line in the chart is intended to focus readers’ attention on DRAM costs, which decrease at a 30% average Continue reading

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