Islamabad, Oct 4: DRAM Prices Drop by 20% in Just One Month
The DRAM and NAND industries are currently facing a significant downturn in consumer demand, with contract prices dropping by almost 20% in just one month.
This has created major hurdles for memory manufacturers. DDR4 memory modules, in particular, are difficult to sell, leading to mounting inventory issues. Consequently, manufacturers are cutting prices to offload surplus stock.
This price decline follows a turbulent period for the DRAM market, where demand dropped sharply after the COVID-19 pandemic.
Initially, manufacturers lowered prices to adjust inventory levels, briefly increasing them again before the situation worsened. According to The Elec, DRAM and NAND prices have cooled, with DRAM exchange reporting a 17.07% price drop for DDR4 8Gb 1Gx8 modules in September, reducing prices to $1.7. The drop in demand is largely due to the shift towards newer memory technologies.
The increasing popularity of DDR5 memory is also contributing to the decline in DDR4 prices. While DDR5 is gaining traction, it hasn’t fully replaced DDR4 yet, particularly for consumers seeking budget-friendly, mid-range systems. As a result, manufacturers are struggling to sell older DDR4 stock despite the growing demand for DDR5.
Despite these challenges, the memory market is forecasted to experience positive growth in the coming months. With growing interest in AI-powered PCs and next-gen products, industry analysts anticipate a rebound in demand, presenting a brighter outlook for the DRAM and NAND sectors soon.
The DRAM prices drop follows a period of volatility in the market, with initial price adjustments after the pandemic failing to sustain higher price levels. Despite the growing adoption of DDR5, the DDR4 market continues to struggle, though experts predict a potential rebound soon.
