Memory chip prices fell almost 18% in the second half of this month, which could lead to cheaper PC prices.
The drop was reported at the DRAMeXchange website earlier this week.
Dynamic Random Access Memory (DRAM) contracts between chip suppliers and PC manufacturers fell to just 78p per chip from 94p per chip in the first half of the month, said DRAMeXchange.
DRAM makers are said to be suffering from a chip glut as a result of overcapacity at their factories.
It was expected, for instance, that the introduction of Windows Vista, which uses more memory than Windows XP, would drive the DRAM market. But the take-up of Vista is not as high as was hoped.