For instance, most manufacturers use automated equipment to test the quality of their products. The relative health of different world economies can have a significant impact on demand. If an ailing nation pulls out of its sluggish economy, OEMs in that country will begin to buy more memory and build more systems, resulting in higher demand for DRAM worldwide. Fiscal seasons generate their own pricing cycle. As month and quarter ends approach, many OEMs focus on reducing inventory levels.
Demand falls, supply grows, and prices drop.
Then there's Santa Claus and the Chinese New Year. Increased purchasing activity typically precedes holiday seasons followed by light activity during and afterwards. This lack of demand can cause price levels to weaken and supply to grow. Inc. All rights reserved.