RAM prices will fall by 13 18 in the last quarter
Hardware

RAM prices will fall by 13-18% in the last quarter of 2022

Inflation weakened consumer demand for RAM and smoothed out seasonal spikes, analysts found TrendForce. In the third quarter of 2022, shipments of DRAM chips fell again, forcing suppliers to stock up. Market participants began to negotiate “Price consolidation in III. and IV quarter“, as well as “Coordination of quantities and prices» – in the IV quarter, DRAM can immediately fall in price by 13-18%.

    Image source: shynix.com

Image source: shynix.com

In the PC segment of the DRAM market, manufacturers will have to make efforts to reduce memory inventories due to the weak demand for notebooks. At the same time, the production of chips continues to grow, and in the fourth quarter we should expect prices to drop by 13-20%. It is noted that DDR5 will fall in price more than DDR4 already this quarter. Penetration of the more expensive DDR5 in the PC market will increase by 13-15% and the average price will fall by 10-15%.

In the server segment, DRAM purchases have declined due to a delay in the release of Intel’s new platform, and server shipments may also decline in the fourth quarter. Server storage inventory remains at its peak for 9-12 weeks. Storage manufacturers are trying to switch to US cloud consumers from OEMs and Chinese cloud providers who have cut purchases, and product prices could fall by the end of the year. The quarterly drop in server memory prices may be at the level of the PC segment – from 13 to 18%.

    Image source: trendforce.com

Image source: trendforce.com

Similar processes are expected in the mobile segment. Smartphone makers continue to scale down their production schedules, making it harder to curb inventories of mobile DRAM. However, given the demand for advanced solutions, the cellular market is increasing its contribution to increasing the production of memory chips. As a result, mobile DRAM prices will fall by the same 13-18% in the fourth quarter and continue to fall.

Graphics DRAM prices will of course depend on graphics card prices, and the latter are expected to fall. The demand for GDDR6 8 and 16 GB decreased – it was not affected by a price drop in the III. quarter saved. Both chip suppliers, Samsung and SK Hynix, will actively compete for orders with aggressive pricing policies. The overall price reduction could be 10-15%.

The consumer DRAM market has recovered with reduced chip shortages and infrastructure upgrades in Europe and the US, but it has proved difficult to offset the drop in demand for other end products. Some manufacturers tried to repurpose old lines for other products, but without much success – demand for image sensors also fell. Price decline for DRAM in the consumer segment will be 10-15% for the fourth quarter.

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Dylan Harris

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

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