DRAM Contract Prices To Plunge By 25% in Q2 2019

The DRAM market prices have been falling for a while now and major memory manufacturers are sweating. According to reports by DRAMeXchange, the month of May saw a drop of 15% in DRAM contract prices and they are only going to get worse. The reports also show that Q2 2019 will see a bigger decline in prices- by up to 25%.

DRAM Prices

Oversupply of chips by major manufacturers and lower demand are to blame. To cool down these issues, Samsung and Micron have slowed down their production. Memory companies have taken a big hit as Samsung’s earnings fell by 26.3%, SK Hynix’s and Micron’s by 31.7% and 30% in Q1 2019 respectively.

Samsung is currently leading the memory market share with 41.3% followed by SK Hynix with 31.2%. The companies will have to clear out their existing inventories before further production and going back to full speed.

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