(This is a general timeline, and is not meant to be date accurate)
At the end of 1999, the memory makers were still trying to figure
out what the next step in memory would be, DDR or RAMBUS. Becuase
they were waiting for the standards to be fought out, they kept up
their standard production of SDRAM and made small attempts to
keep up with the demand for the other memory types.
The result is that halfway thru 2000, they found themselves with a
surplus of SDRAM, while they were switching manufacturing over more
fully to the newer standards. So now we have lowering prices on
the outgoing standard SDRAM, while the memory makers try to set the
premium on the cost of DDR and RDRAM. This puts us, the consumers,
in a sweet spot for SDRAM prices until the surplus starts to dry up
(estimated late spring/early summer).
dcdomain, you're not stupid, but you might not remember the spike in
prices that happened after the Kobe earthquake. IIRC, that was when
the factory that made a large amount of the resin used to seal memory
chips burned down.
There was a spike after the Taiwan earthquake as well, but it was
shorter because less overall damage was done to the industry.
Basically, component prices will jump at any opportunity the companies
have to raise prices, but the course of the industry forces prices back
down as the technology ages and it becomes cheaper to manufacture.