DRAM prices to drop 5 percent

DRAM prices to drop 5 percent

Market news |
By Peter Clarke

This is a steeper decline than the 1 to 3 percent previously quoted by the market research firm and is partly being driven by a shortage of Intel CPUs for notebook computers and weak demand due to uncertainty over US-China trade war.

“DRAM products have begun to see a weak price trend since 3Q18 after the price growth of nine consecutive quarters,” said Avril Wu, a senior research director at DRAMexchange.

PC DRAMs and server DRAMs showed a 1 to 2 percent price hike in 3Q18, while mobile DRAM was flat. Graphics DRAM prices fell during 3Q18. Spot prices are 10 percent lower than contract prices. Spot prices going below contract prices is usually an indicator of a general DRAM price decline.

Server DRAM demand was artificially inflated in 1H18 due to double ordering during shortage. That sector has now flipped to oversupply, partly due to order fulfillment and demand has correspondingly weakened, DRAMexchange said.

Besides a shortage of Intel processors curtailing output of notebook computers and therefore demand or DRAMs, DRAMexchange noted that the U.S-China trade war has brought some uncertainties to the market. Mobile DRAMs could also demonstrate a weak price trend in 4Q18 despite shipments of iPhones boosting the demand.

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