A surplus of memory has meant that prices are falling by up to 25 per cent. The glut of DDR2-667 chips is down to the lack of take-up for new Windows Vista PCs as well as other factors such as a Chinese national holiday.

Of course, this is good news if you're in the market for a PC. When prices drop, manufacturers often put more memory inside each box as an incentive to buy - offers such as Dell's "double your memory" for example. Large PC manufacturers usually renegotiate RAM prices on a regular basis - around four fifths of all memory sold is by contract.

Falling DRAM prices

DRAMeXchange Technology tracks RAM prices. It says the week-long Chinese holiday is partly to blame because the country assembles so many of the world's PCs. And as for Windows Vista, while box sales have been reasonably strong, the number of new PCs being sold with the OS appears to be disappointing to Microsoft.

InfoWorld also reports that contract DRAM prices have fallen 79.4 per cent so far this year. The contract price of 512MB of DDR2 667MHz dropped 25 per cent from two weeks ago to $1.31 (£0.64) each according to DRAMeXchange Technology. The previous low was $1.75 (£0.86).