More good stuff....
Prices of 16-megabit DRAM prices resumed their steep slide. Some say
prices will continue to fall into 1998, putting OEMs in the catbird seat but
leaving vendors with deepening losses. "We're all selling for below cost,"
says Mohammad Iqbal, DRAM marketing manager at Mosel-Vitelic. "Even
those companies claiming they have the very best cost structures are selling
for below cost," he says. There's also growing pressure on newer SDRAM
devices; 64-meg SDRAMs were selling this past week at a new low, says
EBN's Andrew MacLellan.
"It's clear that prices are falling faster than the experience curve due to
overcapacity," says Advanced Forecasting's Moshe Handelsman. With the
current overcapacity plus the new capacity coming on, "it seems there're
plenty of rough times ahead for vendors," says IC Insights' Brian Matas.
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