TrendForce has released a new forecast for the global DRAM market. Despite the approaching main sales season and growing demand for DDR5 products, prices for DRAM chips will fall in the third quarter, according to analysts.
It is noted that there is now weak demand for computers and electronics in the consumer segment. The reasons are the current situation and high inflation. Against this background, significant inventories of DRAM have built up, which in turn leads to a decrease in costs.
Looking at the DRAM market as a whole, a price decline at the level of 0-5% is forecast for the current quarter. In the third quarter of 2022, product costs will decrease by 3-8% according to TrendForce.
In the DRAM segment for PCs, DDR4 memory prices are expected to drop by 3-8% and DDR5 products by 0-5% in the next quarter. This is due to the reduced purchasing power and oversaturation of the DRAM market.
In the DRAM segments for mobile devices and consumer electronics, prices could fall by 3-8% in the next quarter. The demand for smartphones, televisions and other devices is declining. Buyers are forced to save money and therefore update their gadgets less often.
For graphics DRAM and server memory, analysts are forecasting price drops of 0-5% in these categories. TrendForce believes that weak demand is the main brake on graphics memory prices.