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DRAM pricing is expected to drop faster than expected - Huawei ban partially to blame

Huawei shipments will be hit hard for several quarters, and these products would have used DRAM

DRAM pricing is expected to drop faster than expect - Huawei ban partially to blame

DRAM pricing is expected to drop faster than expected - Huawei ban partially to blame

Trendforce has revised their DRAM ASP (average sales price) estimates for Q3 and Q4 2019, stating that they expect DRAM pricing to drip 10-15% in Q3 and a further 10% in Q4, drops which exceed the group's previous expectations. 

Much of this change is laid at the feet of the US ban on Huawei, which will hamper the shipments of both smartphone and server products for several quarters. These products require DRAM, making Huawei's lower sales leaving more DRAM within an already saturated market. 

Q3 and Q4 are traditionally the seasons of peak DRAM pricing, thanks to the seasonal demand for laptops, notebooks and other computing devices. Lowering DRAM pricing in these quarters is a bad sign for DRAM manufacturers, as it means that some of them may lose money in the coming quarters due to lowering prices market oversupply. Margins are getting thinner, and manufacturers are creating too much DRAM.   

This is a good thing for consumers, as cheaper DRAM will enable PC builders to acquire DRAM more cheaply, system builders to create PCs at lower prices and would allow devices to feature more DRAM at a lower price premium. That said, DRAM pricing is likely to increase as we move into 2020, as the cost of DRAM is expected to hit rock bottom in the coming quarters, at least according to Trendforce

DRAM pricing is expected to drop faster than expect - Huawei ban partially to blameYou can join the discussion on DRAM pricing being set to drop at a faster rate than expected on the OC3D Forums.   

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Most Recent Comments

08-06-2019, 08:59:11

g0ggles1994
Lovely, might get myself a new kit if this keeps happeningQuote

08-06-2019, 09:19:21

AlienALX
woohoo ! just in time for Zen 2. God, AMD can smash it out of the park this time. Especially if Zen 2 is less fussy about RAM and speeds etc.Quote

08-06-2019, 09:19:56

cooperman
Sweet looks like the swap to zen 2 + DDR4 will be cheaper than expectedQuote

08-06-2019, 09:22:45

AlienALX
Quote:
Originally Posted by cooperman View Post
Sweet looks like the swap to zen 2 + DDR4 will be cheaper than expected
That was the only part that made the Zen release a little sad. Many did not jump aboard because of it really needing 3000mhz memory but also specific types of memory that were stupid expensive.

That was why I did not switch to TR, because my RAM would have been useless @2133mhz. Now though I have another quad kit (2600) that I got for £100 at Christmas. God, it was cheap. However if Zen 2 is less fussy then that kit would be more than enough.

/Morgan Freeman.. I hope........Quote

08-06-2019, 10:53:41

Bartacus
Quote:
Originally Posted by AlienALX View Post
woohoo ! just in time for Zen 2. God, AMD can smash it out of the park this time. Especially if Zen 2 is less fussy about RAM and speeds etc.
Yeah but I'm betting you're going to see a slew of kits that are "Zen 2 approved" with a decent mark up al la FlareX. I just hope the market drop can compensate, or that I can get away with using RAM I already have. Eagerly awaiting more specifics from G.Skill on X570 timings / speeds!Quote
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