Major players in the RAM market – Micron and SK Hynix – are reducing production volumes, including memory of DDR5 and DDR4 standards. During the first quarter of this year, the average selling price (ASP) of DRAM fell by 20%, but is expected to decline by another 10-15% in the second quarter.
DDR5 and DDR4 RAM prices continue to drop as supplies increase. Along with the decline in value comes uncertainty as it is not known whether demand will rebound in the second quarter or continue to fall. Manufacturers have been forced to lower ASPs to meet consumer and customer demand, but the industry is showing that supplier inventory levels are at record highs.
Taking into account the current situation, the analytical company TrendForce made forecasts of DRAM prices for the first and second quarters of 2023.
Due to the stagnation of the market over the last three quarters, demand from sellers has significantly decreased. Most retailers display thirteen weeks’ worth of inventory on shelves and in warehouses. Even with suppliers curtailing production to balance sales, prices for individual DRAM memory modules, such as 8GB of DDR4 memory, are expected to fall by more than ten percent in the second quarter.
Computer manufacturers can use the lower cost to their advantage by buying more DRAM for their products, but it is unclear whether this will be enough for suppliers to solve the inventory problems. According to analysts’ forecasts, the average price of RAM for PCs will decrease by 10–15%.
Also, for users who prefer self-assembly, there is also an opportunity to increase the RAM capacity of their systems for a lower price. DRAM has really come down significantly in price over the past few months.