DRAM Prices Projected to Fall 5%
As an essential part of every computer, DRAM is always in demand. Overall the past while, prices have stayed steady except when unexpected shortages popped up. However, with slowing PC, smartphone and tablet sales, DRAM sales are expected to drop. According to market data research, DRAM prices will drop a significant 5% this year. This is due to a combination of oversupply and weak demand.
DRAM prices have steady grown since the golden days of DDR3. Back then, memory was cheap and plentiful. However, over the past couple of years, prices have shot up and only recently stabilized. The price increases were due to a combination of supply problems and heavy demand for smartphones and tablets. However, with device uptake slowing and along with a weak PC market, demand is finally easing up.
Combination of Factors Driving Price Drop
The ongoing Intel 14nm shortage is also helping keep demand low. With CPUs serving at the bottleneck, sales are expected to weaken even as AMD takes up some of the slack. Analysts expect that DRAM prices will fall by about 5% by the end of this year. Already, spot prices for DRAM is about 10% below contract prices. This is making it clear that it is buyers market right now. Samsung has even moved to cut production, possibly to shore up prices.
For those of you planning an upgrade, the falling memory prices might be a welcome move. Along with the death of mining and cheaper VRAM, GPU prices may also fall as well. However, as we get closer to the end of the year, new product launches may push prices back up next year. While prices will be lower going forward, it is unlikely to hit the levels we once had back when DDR3 was at it’s peak.
