DDR5 & DDR4 DRAM Prices To Drop Due To Inflation & Russian-Ukrainian War Crisis

Recently Researchers at TrendForce contemplated the DRAM marketplace. Their discovery has shown that due to inflation and the ongoing war between Russia and Ukraine, purchasers' demand for DRAM has decreased. Because of the conflict, the manufacturers, distributors, and sellers are struggling to decline their supply. Therefore, this hike in stock caused DRAM prices to drop between three to eight percent due to the increase in the collection of DDR5 and DDR4.

Prices for DRAM (DDR5/DDR4) memory drop 8% as businesses try to release some of their overstocked products.

Leasing to an increase in DRAM inventories, with annual shipments being affected, computer OEMs have encountered a considerable loss. With the earnings not keeping up with the expenses, the manufacturers had to change and remove inventories during the third quarter of 2022. Cost for additional will fall further to eight percent in the next half of 2022, and this is due to suppliers struggling to reduce the supplies in the markets.

The PC DRAM, which includes DDR4 and DDR5, will probably fall further by 3-8% and 0-5%, respectively, as shown in the breakdown.

DRAM price movement between Q2 and Q3 of 2022. Source: TrendForce

With the forecasted decline in pricing for quarter three of 2022 being as high as five percent, the consumer PC DRAM market does not affect the server DRAM markets in an elevated manner. Even considering an increase in advancements in processing and heightened wafer input, the inventory levels of server clients were barely high but did not have any significant effect on output consumption, and it was seen over eight weeks. However, the consumer market is influenced by mobile and PC DRAMs. The focus of suppliers has shifted from production capacity to DRAM server markets due to the DRAM stock’s uncertainty level. Indeed, to put an end to declining costs, the suppliers need to adapt to new strategies that will be the most effective.

In the server marketplace, making the manufacturer aim at the lowest effect on sales, the mobile DRAM market has pushed the production each quarter of 2022, and this is only due to the scanty consumer need. The increasing demand for the next-gen technology and the declined demand for old products caused the drop in smartphone sales in 2022, and compared to the last quarter, the decline was up to eight percent. With the mobile prices dropping, there is a better opportunity for the mobile users to get a better phone at a low and reasonable price, so the users should keep a check on whatever the news is saying.

With the demand dropping to nearly five percent in the last quarter, graphics DRAM markets have had a similar effect to the server DRAM market. The increased production caused an increase in demand and lowering of price by the Korean manufacturers and a lack of sales of GPUs, which happened in the last few months. We can only hope for the CPU prices to stabilize and increase demand.

Last but not least, making the consumer DRAM markets maintain their hold this quarter, the DDR3 and DDR4 have supported a strong selling firm. But there is a good chance of a price hike as the looming recession continues and the production costs.