DRAM Price Drops of Recent Quarters Are Slowing, According to New Report trend force. Computer industry market researchers expect DRAM prices to fall only 0% to 5% this quarter. This figure contrasts with the 13-18% drop in his DRAM prices in Q2 2023. These headline numbers are for the entire DRAM market (including server, mobile and graphics), but they also apply to the segment we are most interested in: PC DRAM.
According to TrendForce, one of the reasons for the slowdown in DRAM price declines is that the big three companies are cutting production. While such measures may provide temporary relief to producers, trying to artificially create scarcity or running production much slower than they should is usually not possible in a competitive market. Not a sustainable strategy. We would rather DRAM manufacturers stimulate demand by, for example, making larger RAM configurations more affordable.
Another complication for DRAM makers is TrendForce’s claims of high DRAM inventory levels. Holding excess inventory is also not a solid long-term strategy. If the big companies relieve pressure from their production lines and inventories, it could trigger another big price drop. In the meantime, they may hold on in hopes that new devices and platforms will spur more DRAM purchases.
Based on Q2 and Q3 numbers and market knowledge, TrendForce said it doesn’t think DRAM prices are likely to recover “until 2024.”
Looking specifically at PC DRAM, TrendForce says DDR4 is still in oversupply, with prices expected to drop 3-8% this quarter (Q3). Market researchers say PC DDR5 will see a more modest 0-5% decline in Q3. So the influence of the PC maker and his DIY users is gradually shifting to systems using newer and faster memory standards, perhaps even early adopters jumping on higher capacity DDR5 kits. You can see that there are
Graphics DRAM is in a similar situation to the slowdown in second and third quarter price declines for PC DRAM. TrendForce points out that the recent launch of his RTX 40 has significantly increased the demand for GDDR6 16Gb chips (2GB VRAM). Plus, as we’re approaching peak VRAM consolidation season for component manufacturers, graphics RAM may bottom out (and rise) before PC system memory.
In conclusion, these numbers seem to indicate that the decline in PC RAM prices seen in recent quarters may be slowing. For some, it will signal that it is a good time to buy. For those doing a RAM upgrade, this decision may be the right one, but there are so many other PC component prices to consider when buying a new complete system.
If you’re interested in PC RAM right now, it’s worth checking out our frequently updated guide to the best RAM for gaming in 2023. This guide lists his favorite DDR4 and DDR5 kits and includes specs, mini-reviews, full review links and buy links.
