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DRAM prices fall, in what is usually peak season

by Mark Tyson on 5 October 2015, 13:20

Tags: SK hynix, Samsung (005935.KS), Micron (NASDAQ:MU)

Quick Link: HEXUS.net/qacu5q

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If you keep an eye on the prices of PC components you may well have noticed RAM prices dipping pleasingly over recent weeks. Market research website DRAMeXchange, which keeps an eye on such things, says the spot price of DDR3 4GB fell 3 per cent, from US$19 in August to US$18.50, in September. The movement came despite an 8 per cent spike during the month, due to China's 70th anniversary of Victory Day observation period, and first-tier DRAM suppliers' attempts to hold the price around US$20 to US$21.

The crux of the problem for the DRAM industry seems to be due to Microsoft's Windows 10. DRAMeXchange Assistant VP, Avril Wu, said that what was usually peak season for laptops was disappointing because the free Windows 10 upgrade didn't create demand for new computers. Additionally, in its iterations following Vista, Windows memory resource usage/requirements have been edging lower.

It isn't just our personal computers that aren't providing the demand necessary for DRAM producers to keep their prices from flagging. Wu asserts that "projected shipments of smartphones and servers have been marked down, and this has seriously eroded the margins of DRAM suppliers".

DRAM price decline to continue into H2 2016?

Looking ahead for the next couple of quarters DRAMeXchange "expects price decline in the DRAM chip market to become more severe than the current slide," all the way to half way through next year. A steeper slide could happen "if the global economy continues to stagnate". Furthermore we might get stronger price competition between the three dominant suppliers – Samsung, SK hynix and Micron. It is thought that Samsung could puts pressure on competitors by moving to 18nm technology first, giving it a buffer for price cuts and offering more attractive memory with better power efficiency and higher densities.



HEXUS Forums :: 8 Comments

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OMG, considering how high RAM was generally priced at etailers Dec 14 (and been tumbling) this is a crazy low.

I can recall how in May 15 there was suggestion Q3 & Q4 may see a rise.

Link:- http://hexus.net/tech/news/ram/83403-dram-prices-continue-fall-q2-2015/
interesting….so at a time prices normally rise, we have had a glut of the stuff in warehouses.

That explains a lot :)
Every few years we get a couple of years when we don't need more memory (and then something does come along to make us need more). Right now we seem to be stuck in the 8GB system RAM rut, and the people who need 16GB/32GB have already upgraded. And nobody is buying new computers if they can avoid it.
Agree.

I stuck with my Q6600 (rig built 2007ish) til this early this year. If I hadn't gone back to gaming on the PC I really couldn't see any need to upgrade from that for the general windows/office use I do. Even my laptop is ancient, but as it fulfills it's purpose why upgrade?
may be worth a small increase then whilst its cheap