The inventory glut is being digested, clearing the way for the sale of newer products. That's good news for companies like Micron Technologies and even the PC companies. The remarkable aspect of memory prices right now is that they aren't changing. Contract prices, or the prices that large PC makers pay, are tracking the same trend. In the recent past, the picture was less placid.
Stabilization is the result of the inventory evaporation.
Excess supplies in late 2000 lead to massive discounts. The problem was compounded in February when memory makers dumped inventories before the end of the Japanese fiscal year, said Ross. Memory companies typically try to spruce up their books by clearing out inventory. Not only are memory inventories drying up, PC inventories are shrinking as well, he said. It is a similar sentiment cautiously shared by some computer executives.