DRAM demand slowdowns could lead to decreased DRAM prices

lower demand from mobile phone manufacturers and cryptocurrency miners are to blame

DRAM demand slowdowns could lead to decreased DRAM prices

DRAM demand slowdowns could lead to decreased DRAM prices

According to a report from Nikkei, the demand for DRAM declined in April, creating an oversupply in the market in Japan and elsewhere. This dop in demand offers the potential for decreased DRAM pricing over the summer, which will hopefully return the price of consumer DRAM to normal levels after two years of price inflation. 

Today, DRAM demand comes primarily from the smartphone market, data centers and cryptocurrency miners, markets where DRAM supplies are often purchased in bulk. In recent months, cryptocurrency mining demand has weakened considerably, with slow growth in the smartphone market also contributing than lower than expected demand.    

Below is a comment from a representative of a Tokyo electronics parts retailer, who says that demand was strong from cryptocurrency mining operations in the past. 

   Orders for DRAMs fell noticeably in April, We previously received quite a lot of orders, even from companies with whom we did little business.

The drop in cryptocurrency hardware demand has also had a significant impact on graphics cards and the DRAM which is used in their creation, also contributing to lower DRAM demand in today's market. 

DRAM demand slowdowns could lead to decreased DRAM prices

DRAM has been a huge growth factor for the semiconductor market in recent years, thanks to high demand from several expanding market. Now years of investment in increased DRAM production are taking its toll on the market, with lower than expected market growth having a knock on effect on DRAM pricing. 

It is likely that this recent shortfall will cause DRAM producers to adjust their manufacturing to best cater to these market conditions, which isn't good news for consumers as DRAM manufacturers like to keep prices and their profit margins high. Regardless it seems likely that DRAM prices will decrease in the short term. 

We hope that DRAM pricing will decrease significantly before the year's end, as DRAM has become ridiculously expensive, with the DRAM in new systems often costing as much or more than the user's CPU, making the prospect of building a new gaming PC a lot less attractive. 

You can join the discussion on recent declines in DRAM demand on the OC3D Forums

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Most Recent Comments

19-05-2018, 10:58:16

I wouldn't mind another 2x8GB sticks of 3600 Corsair RGB but it's still £100 more expensive than it was 1 year ago.Quote

19-05-2018, 12:37:25

It'll still take a few months for prices to even get to sane levelsQuote

19-05-2018, 16:05:52

Prices will come down a little bit until the overage is cleared and then its back to standard "scarcity" even if demand doesn't pick up.

I'm standing with the tin hats on this topic, artificial DRAM scarcity to ramp prices upQuote

19-05-2018, 16:27:47

Originally Posted by g0ggles1994 View Post
I'm standing with the tin hats on this topic, artificial DRAM scarcity to ramp prices up
Standing right there with you. They've made more money than I'll ever make and any likely fines for price gauging will seem like jokes to them. And with server memory at a 60% margin they'll continue to give consumers the finger with a nog smile on their faces. In the end we will not see prices ever return to what they were.Quote

21-05-2018, 07:53:12

Can't see it myself.
Just like the world needs oil to power the majority of its vehicles and generators, the world needs dram to power its technology.
If one oil supplier decides to significantly lower its prices, the rest have to follow suit to compete. If Samsung suddenly decide to drop their price for dram components the the others will have to follow.
Any of the suppliers willing to go first??? Come on don't be shy, it'll only hurt your profits.... 😂Quote

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