Even though low memory prices are a great thing for consumers, memory makers are scrambling to generate decent profits from overall sales. With recent drop in prices for DDR and DDR2 modules, an insider reported that the entire memory industry is having a troubling time coping with poor profit margins.

For instance, if we were to assume that memory makers were generating 10 percent profit from a $300.00 dual-channel kit; it would yield to $30.00 in proceeds. Now that the prices have dropped, manufacturers aren’t generating nearly as much as they were previously. If the prices have dropped to $140.00 per pair and you take 10 percent off of that, companies are left with $14.00 in overall profit. This depicts an average decrease of 46.7 percent profit margin in this scenario, according to the insider. Of course, these numbers only apply to a certain kit, and profit margins for every product are different. This example is just there to give you a gist of what’s going on in the industry.

Other than that, the innovation for DDR is pretty much at a standstill while DDR2 is continuing its way up the speed ladder.