Home » Memory prices drop 8% due to crisis and inflation
Technology

Memory prices drop 8% due to crisis and inflation

Before I say it, before the first official DRAM and NAND Flash market reports arrive. It’s again TrendForce that has shed light on what’s to come and as we anticipated last week, manufacturers are in the midst of a memory price war due to the crisis and inflation which will already be reflected this year, especially in the PC and graphics card market.

Good news in all the chaos there is, and that’s a breath of fresh air coming from the heights of an industry that runs it all. Memory in general is not going to have a good time and it looks like we will end 2022 with better prices and if nothing changes 2023 will be even better, at least for a quarter.

DDR4 and DDR5: falling memory prices due to the crisis and inflation

TrendForce-DRAM-price-2022-memory-crisis

The factors are the same as those we already anticipated at the time and which we will summarize to give context to today’s data:

  • Very low request by companies and users.
  • Inventory excessive.
  • price of raw materials and components paid at the price of gold.
  • saturated market of products.
  • Inflation Yes crisis economic.

After commenting on that, we could talk at length about each section, but as they say, let’s get to the data, that’s what’s important. On PC, DDR4 will be between a 3% and 8% because the decline in demand for components is greater than expected, where neither Intel nor AMD will be able to stop them with the Ryzen 7000 and Core 13.

The problem is that DDR4 is gradually shifting to a better lifespan so, and given inventories up to the top of the stock, all that’s left for manufacturers to compete on price is to know they’re making a loss . With DDR5, the drop is less because the demand should be a little better for the two new architectures from Intel and AMD, but the forecasts are also down with a 5% decrease.

Total increases from 3% to 8% in DRAM

Memory-RAM-DDR5

Manufacturers will play everything on a single card with server memory, since in this sector a demand similar to the previous one is expected, with small drops. Therefore, the decline in DRAM price might stay closer to the 0% that of this 5% announcement.

Mobile phones will also experience an interesting drop, because as prices explode and everyone has a more or less modern one, users will save their money and therefore demand will be much lower. This leaves a drop in the price of the 3% to 8%.

Finally, graphics cards will also see their sales decline, in particular due to a large second-hand market and an overwhelming stock in stores which will compete with each other before the release of the cards. RX7000 and RTX40. Due to the supposedly high prices that these two new series will have, the user will not be able to acquire a new GPU, and even less when he has in the market succulent offers from miners and mining companies, offers from stores and individual sales in between.

As can be seen, the scenario is really bad for builders and very good for users, where in the case of DDR5 the drop in price since its release in November has been dramatic.

About the author

admin

Add Comment

Click here to post a comment

Your email address will not be published.