According to a report from DRAMeXchange, we can expect DRAM prices to plummet by 10 percent in the first quarter of 2019. The research group claims that the reason behind this fall in price is because the manufacturers paid between 1.6 to 3.2 percent less for 4 GB or 8 GB PC memory modules in November as compared to what they paid for them in October.
The start of 2018 saw memory prices shooting up sharply as the demand exceeded the supply. As obvious, this gap between supply and demand increased the prices and when the manufacturers were unable to increase their production accordingly, government agencies and law firms started to take notice and began investigating for potential price-fixing. The prices then eventually started taking a dip as the companies started to increase their production. This is why, according to a report from Bloomberg, Samsung is preparing to reduce its memory module production for 2019 in anticipation of a decline in demand.
In one of their reports in September, DRAMeXchange said that prices are expected to drop by up to 5 percent in 2018. Now they have said that prices for PC DRAM, server DRAM, and specialty DRAM could fall by up to 10 percent in the first quarter of 2019. The prices of mobile DRAM are expected to remain stable since its prices didn’t increase as much compared to others.
These price drops are mainly due to an increase in the production, and along with this, the issues between U.S. and China have also contributed to it. Both the countries have been accusing each other that companies from either country are competing unfairly in the DRAM market.
DRAMeXchange, in their report states, “For the PC DRAM segment, DRAMeXchange expects the prices to decline by over 10 percent in the first quarter of 2019 because PC DRAM products are highly sensitive to the change in demand and supply situations. The continued supply increase, headwinds in the low season, and excess inventories would make the price drop steeper compared with this quarter. Similarly, server DRAM products would experience an even larger price drop. In addition to current high inventories held by server DRAM consumers and the seasonal headwinds, U.S-China trade disputes may also bring more uncertainties to the market.”