DRAM prices to keep on falling in 2H19

DRAM prices to keep on falling in 2H19

Market news |
Memory market analysis firm DRAMexchange has said that with plenty of stockpiled DRAMs on hand price declines are set to continue into the second half of 2019.
By Peter Clarke


The firm expects falls of over 20 percent in 2Q19 but said this has not stimulated a recovery in demand and that transactions have been few so far. As a result DRAM average selling prices are predicted to continue falling in the 3Q19.

Inventory levels are standing at five weeks on average and up to more than seven weeks depending on the type of DRAM and the customer.

Price decline predictions for DRAM types in 2Q19 and 3Q19. Source: DRAMexchange.

The price drops will be steepest for PC and server DRAM at about 20 percent with mobile DRAM set to drop by 10 to 15 percent.

The PC market for DRAM is affected by low end-user equipment demand and the shortage of Intel CPUs at the mid- and low-end. Mainstream 8Gbyte DRAM modules are being priced at $40 and could go as low as $30 by year-end DRAMexchange said. For server DRAM the company predicts that declines will remain around 20 percent in the second quarter, and persist into the third and fourth season at around 10 percent.

With smartphone shipments expected to shrink in 2019 and limited growth in DRAMs per unit in mid-range and low-end phones, contract prices for DRAMs are also expected to fall in the second and third quarters.

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