Average selling prices for dynamic random access memory (DRAM) dropped 20% quarter-on-quarter in Q1 2023. trend forceA 10% to 15% memory price drop is expected in Q2 2023, with DDR5 prices dropping significantly more than DDR4 prices.
Micron, Samsung, and SK Hynix have begun adjusting DRAM production to reduce supplies, at least to keep prices at current levels, while PC, consumer electronics, server, smartphone, and graphics card makers are We still have many DRAM ICs, and it is unlikely that we will do so in the future. Accelerate purchases before your products are in high demand. As a result, the efforts of DRAM makers have yet to have a noticeable impact on price declines, according to a TrendForce report.
PC OEM and ODM buyers are buying fewer PCs. PC DRAM Despite a significant increase over the last three quarters, we still have plenty of DDR4 and DDR5 SDRAM in stock for about 9-13 weeks. It’s possible that the PC maker will take advantage of the lower prices to buy more of his DRAM, but it’s not clear if this will alleviate the situation of supplier overstock.
Despite lower production volumes, TrendForce predicts 8GB DDR4 module prices to drop by more than 10% in Q2 2023. Another 10% to 15% increase in the second quarter, analysts said.
Historical data from Jon Peddie Research shows that discrete graphics card sales tend to recover gradually in the first quarter and then decline in the second quarter. Still, desktop GPU shipments dropped significantly in his Q3 and Q4 2022, so GPU makers have plenty of inventory. GDDR memory Demand for such ICs is sluggish due to chip inventory. TrendForce forecasts average selling prices for 16Gb GDDR6 ICs to drop 10% to 15% in Q2 2023 due to demand constraints.
Thanks to slowing PC demand, memory manufacturers increased the percentage of server memory in their product mix.but this is important Server DRAM Server memory prices are falling as server manufacturers and cloud service providers are also adjusting inventories. TrendForce now predicts that the average selling price of server DRAM will fall 13% to 18% in the second quarter of 2023.
Smartphone suppliers’ DRAM inventories have fallen to relatively healthy levels, but these brands are taking a cautious approach to handset production.This may limit buyer demand mobile DRAM Q2 2023, according to TrendForce.
Despite the reduction in mobile DRAM production, it remains a challenge for suppliers to reverse the current overstock situation. Every DRAM manufacturer wants to sell all his LPDDR ICs they own at almost any price, so this has a big impact on the average selling price. TrendForce believes that the average price of mobile DRAM will continue to fall in the second quarter of 2023, but the decline will narrow to 10%-15%.
as far as consumer electronics memory Supply is outstripping demand even though manufacturers are curtailing production of suitable ICs. A TrendForce analyst believes average selling prices for consumer DRAM will fall 10-15% in the second quarter of 2023.
