DRAM Pricing Receives Largest Quarterly Decline since 2011

DRAM Pricing Receives Largest Quarterly Decline since 2011

DRAM Pricing Receives Largest Quarterly Decline since 2011

In their latest DRAM market analysis, DRAM Exchange has reported that DRAM pricing has decreased by “nearly 30%” this quarter, making it the sharpest quarterly decline in DRAM pricing since 2011. 

It has also been discovered that most new DRAM contracts are now monthly deals, rather than quarterly ones, as buyers are now keenly aware of the current state of the DRAM market. Quarterly deals made a lot of sense with DRAM prices were increasing, but now that prices are lowing, monthly deals have started to make a lot more sense. 

All major DRAM manufacturers now hold a whopping six weeks worth of inventory, which is a major change from this time last year, where manufacturers were able to sell almost every chip they produced. With this level of excess inventory, DRAM pricing has entered free fall, a change which will result in lower DRAM prices for consumers. DRAM pricing is expected to continue decreasing in 2019, assuming that that market forces don’t cause a sudden spike in DRAM demand. 

Even with lowering DRAM prices, most big DRAM players are continuing to invest in new facilities, with Samsung, SK Hynix and Micron planning to create more manufacturing facilities. In the future, self-driving cars and other AI-powered devices are expected to use large amounts of DRAM, making manufacturers confident that DRAM demand will increase in time. 

DRAM Pricing Receives Largest Quarterly Decline since 2011  

DRAM pricing is expected to continue decreasing in 2019, though pricing is not likely to continue dropping at this rate in Q2. 

You can join the discussion on DRAM prices lowering by almost 30% in Q1 on the OC3D Forums.