DRAM Got Cheaper and Prices Will Continue to Fall
upstart writes:
DRAM got cheaper and prices will continue to fall:
While prices for computer hardware have remained relatively high in the past few years, the slowing of PC and component sales are starting to take effect. DRAM is the latest piece of hardware to become even cheaper, and projections show that prices will continue to fall in the coming months.
According to a report from TrendForce, DRAM prices have fallen 20% in the first quarter of 2023. This is a continued decline for the DRAM market as sales have been slowing for all sectors of the industry. Some DRAM manufacturers have already started layoffs as they see their revenues on a steep decline. For the second quarter of 2023, TrendForce says that prices are expected to fall another 10 to 15%.
Despite production cuts already in effect, PC makers still have between 9 and 13 weeks of DRAM inventory. The mobile sector seems to be having healthier levels of inventory as mobile manufacturers were more conservative in their plans.
Nonetheless, mobile DRAM pricing is also expected to decline by 10 to 15%. As consumer demand for DRAM was sluggish, suppliers looked to the server side of the business for sales, however this simply resulted in a huge pile-up of inventory for server DRAM.
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