256Mbit DDR spot dips below production cost

256Mbit DDR dips below US$3
yowiee! Article says the normal thing to do when spot drops below production cost is to trim back output until the price equalizes...In this case the manufacturers are in a mad rush to increase yields and show no immediate sign of slacking production!

DRAM spot prices have tumbled 15% within the past three transaction days, with 256Mbit DDR plunging below US$3 on Monday, reported the Chinese-language Commercial Times, citing DRAMeXchange.

OEMs, having racked up over five weeks of inventory, began throwing supply into the spot market last Thursday, according to the report. OEMs including Dell Computer and Hewlett-Packard (HP) represent 70% of the DRAM buyers