Transcend: No room for further price reduction for DDR and DDR2

No_Style · Jun 15, 2005, 10:24 PM

According to Peter Shu, chairman of Transcend Information, there is no room for price reduction for DDR memory, and DRAM makers have stopped lowering their prices. DDR2 prices have bottom out as well, and the segment does not have room for more price cuts, as the NAND flash segment does, Shu added.

Shu did note that prices for certain types of DDR2 are continuing to drop, though he explained that most of the decrease is for DDR2 400MHz chips, as firms simply try to clear out their inventory.

Due to continued price drops for DRAM and NAND flash memory, Transcend’s gross margin have declined from 15% in the first quarter of this year to 11-12% in the second quarter, Shu said. The company expects its gross margin to return to 15% in the second half of this year and its sales to rebound from the NT$1.0 billion the company recorded in May, he added.

Transcend will focus on developing its presence in China and eastern part of the US in the second half of this year, with the company planning to establish sales branches in Maryland, Miami and Chicago within the next three years.
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Read More/Source: DigiTimes

Jun 15, 2005, 10:24 PM	#1
No_Style Styleless Wonder Join Date: Jun 2002 Location: Ottawa, Ontario Posts: 6,034 Rep Power: 0	Transcend: No room for further price reduction for DDR and DDR2 According to Peter Shu, chairman of Transcend Information, there is no room for price reduction for DDR memory, and DRAM makers have stopped lowering their prices. DDR2 prices have bottom out as well, and the segment does not have room for more price cuts, as the NAND flash segment does, Shu added. Shu did note that prices for certain types of DDR2 are continuing to drop, though he explained that most of the decrease is for DDR2 400MHz chips, as firms simply try to clear out their inventory. Due to continued price drops for DRAM and NAND flash memory, Transcend’s gross margin have declined from 15% in the first quarter of this year to 11-12% in the second quarter, Shu said. The company expects its gross margin to return to 15% in the second half of this year and its sales to rebound from the NT$1.0 billion the company recorded in May, he added. Transcend will focus on developing its presence in China and eastern part of the US in the second half of this year, with the company planning to establish sales branches in Maryland, Miami and Chicago within the next three years. _______________ Read More/Source: DigiTimes __________________ "The Best Style Is No Style" Specifications Here