In case you don’t know and you are living in your bubble, let us tell you that the world is going into an economic recession and many countries are directly in crisis. The blow is going to be, perhaps, worse than what we have already experienced in 2008 and analysts and stock markets are in the red, resulting in an industry like memory. And it is that the ram memory manufacturers they will enter a price war to sell the stock because of this crisis. Why are prices falling and not rising?
It’s a tricky situation, there’s hardly any stock escaping and only the old energies and the banks are making money or increasing their profitability. The world is collapsing economically and the memory sector is at a fateful point which may mean that many do not survive it.
The price of DDR5 is falling and RAM manufacturers are in crisis
Do you still have a job? Congratulations. That’s going to be the dialectic that a lot of us are going to have to use when talking to friends and family, because what’s coming will be in the history books of economics, and showing a button like we said.
The Core 12 They were the forerunners of DDR5, ahead of their time in concept and form, they brought this new memory and due to several factors, high demand, low supply, price of PMIC and others, the starting price was high, very high. The manufacturers have put their batteries, increased the stock to much higher levels and while waiting for the release of Zen 4 are there to sell it all.
The problem is that they paid a fortune for the components and raw materials and now… Now the financial reports are showing red numbers for a very simple reason that goes back to what was written above: demand will drop dramatically. People are losing their jobs, there is no money as such, cash has been taken out of the markets and financing is already almost twice as expensive as it was a year ago.
ADATA, Team Group and even Micron in the red
The data is really scary when it comes to the following companies: ADATA guys –22.79%, Team group technology guys –18.47% and with them there are many more who, in their financial reports, see 2022 and especially 2023 as a problem that could end them.
Micron, the third-largest chipmaker for these companies, has already signaled that it will need to lower prices in the second half to seek purchases from these assemblers and others. Having said that, Micron went public yesterday 6% In a single day and given the policy to be followed, the losses will be huge, as the prices of the raw materials and the chips attached to which they were purchased pull the numbers into the red.
Therefore, RAM memory chip makers will rush down into an unprecedented crisis, at the worst possible time, with minimal demand and where assemblers are up to stock that presumably they won’t be able to sell if they don’t bring prices down to the ground and even so, it’s very likely that they won’t succeed. Take a look at what’s happening with the RTX 30 and RX 6000 GPUs, new and used: nobody wants it I continue to lower prices or users do not think they will fall back into the trap, and even less knowing that there will be a war between manufacturers in barely 4 months.