DDR5 & DDR4 DRAM Pricing Continues To Decline Due To Extremely Low Demand
DRAM including DDR5 & DDR4 memory is seeing a production cut from leaders in the field, such as Micron and SK Hynix, reports TrendForce. During this first quarter of the year, the average selling price (ASP) of DRAM dropped as high as 20% but is anticipated to become much less in the second quarter by 10-15%.
With the price drops comes uncertainty as it is unknown if the demand will return to its rightful place within the second quarter or continue to decline. Manufacturers have had to lower the ASP to meet the needs of the customers and clients, but the industry shows that supplier inventory levels are at an all-time high. Unless the production lowers, the prices will not return to normal.
TrendForce broke down the price projections for DRAM products during the first and second quarters of 2023 in the below graph.
The analytic company broke down each sector, explaining the decline for each.
The future is bleak, with demand being lowered overall in all markets, not just the DRAM marketplace. It will be interesting to see these numbers again entering 2024.
News Source: TrendForce
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