Following a sharp price decrease in the memory industry, which was primarily driven by dwindling demand and a lack of customer interest, DRAM price declines have been slowing down recently.
DRAM Industry Expected to Witness Economic Rebound, Now is The Best Time to Get New DDR5 Memory
TrendForce reports that industry experts have predicted that the price decline for the current quarter has reduced to 0-5%. Compared to what we saw in Q2, this is a significant decrease and will potentially be fruitful for the industry. However, TrendForce has also stated that price recovery for DRAM products won't occur soon and is expected to take place by 2024.
This decline in price drop trend is mainly related to the industry leaders such as Samsung, Micron, etc., reducing their production faster than in previous quarters. This is an attempt to cater to the oversupply situation that the industry has witnessed for several quarters. This strategy will benefit companies in the short term since it could create a scarcity of memory products leading to a price hike. However, from a consumer point of view, it can cause trouble, specifically when acquiring high-configuration memory.
The oversupply isn't limited to current-gen memory products, as TrendForce states that DDR4 is also facing a similar situation. It is expected that DDR4 memory could drop in price by 3-8% for upcoming quarters since manufacturers are focusing on getting rid of high inventory levels. Moreover, statistics for Graphics DRAM have depicted that it is too affected by the price decline in the industry. However, with the release of the new GeForce RTX 40 series lineup, the demand for 16 GB GDDR6 memory is increasing, but the price drop is still expected to be at 0-5% for Q3.
The current situation in the DRAM industry is surely devasting, and it is still unclear when the markets will recover. However, it was recently reported that companies like SK Hynix have witnessed a significant increase in demand mainly due to the recent AI boom. The DRAM business is severe. problems right now, but the buzz around AI may be able to save it.
source https://wccftech.com/pc-dram-price-decline-to-slow-down-in-upcoming-quarters-as-demand-picks-up/