According to DRAMeXchange, we can expect prices for DRAM memory and NAND chips to drop from the fourth quarter of 2018 onwards, and leading into 2019. Specifically, the prices are expected to drop by up to 20% from today’s sticker price.
The current prices of DRAM memory and NAND-based products are through the roof, thanks to price fixing by major NAND cartels. The price fixing is so apparent, some members of the aforementioned cartel are currently facing litigation in China due to the price fixing.
Some of the reasons cited for the expected price decrease includes uncertain smartphone shipment numbers in 2019. 2018 is not a record year for smartphone manufacturers, and it is expected that 2019 will fair no better. Hence, DRAM makers are expecting oversupply in DRAM chips by the end of the year.
Another reason is the aggressive marketing and production by enterprise SSD manufacturers that’s expected to take placenext year. Resulting in NAND prices to fall by 25-30%. Lastly, the expected China-US tariff war will impact sales of smart devices (phones, tablets and laptop), which could result in an glut of NAND and DRAM chips.
It is yet to be seen how the price reduction will translate to consumer devices, but at least we should see a drop in RAM and SSD prices come 2019.
(Source: Trendforce via TechPowerUp)
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