DRAM memory prices are likely to fall 5 in the
Hardware

DRAM memory prices are likely to fall 5% in the second quarter – only video memory will increase in price

TrendForce has released a new forecast for the global DRAM market. Analysts assume that given the current situation on the IT market, prices for the relevant products will fall by up to 5% in the second quarter. The main reason is the increase in inflation and the current geopolitical situation – sales of products with DRAM memory will decrease.

    Image source: Samsung

Image source: Samsung

Now there is a drop in demand in the consumer segment. The only area where there is still a high demand for DRAM is in the server area. Cloud platforms and data centers are contributing to the development of this market.

In the current quarter, the cost of DDR4 memory for PCs is expected to decrease by 5-10%, for DDR5 products by 3-8%. In the next quarter, prices are expected to fall by 3-8%. PC and component makers will not increase inventories much, and the supply of DRAM in this segment continues to grow.

In the server segment, a cost reduction of 8-13% can be observed in the first quarter of 2022. In the second quarter, the memory price in this area is likely to fall by 5%. Here, too, supply exceeds demand and the situation is unlikely to change in the short term.

    Image source: TrendForce

Image source: TrendForce

RAM for mobile devices continues to get cheaper as smartphone production falls due to rising inflation and other factors. However, if the drop in the current quarter was 8-13%, in the next quarter it will be 0-5%, and for some memory types prices will not change at all.

Graphics memory remains the most stable due to high demand for graphics cards, computational accelerators, and set-top boxes. In the next quarter, prices here could increase by up to 5%. But DDR3 RAM will increase in price by 3-8% due to the increasing demand for telecom equipment.

Looking at the DRAM market as a whole, a price decline at the level of 8-13% is forecast for the current quarter. In the second quarter, product costs will remain flat or decrease by 5% on average.

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About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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