DRAM Prices Plummet 20%, NAND Flash Down Over 10%

The DRAM and NAND memory sectors are experiencing a significant decline in consumer demand, with contract prices for memory products dropping by more than 10% in just one month. Notably, DRAM prices have plummeted by nearly 20%.

Over the past few quarters, the DRAM market has faced extreme fluctuations, particularly in the post-pandemic era. The waning interest in consumer electronics and shifting market dynamics have driven demand to historically low levels. In response, manufacturers have resorted to price reductions to clear excess inventory and correct stock imbalances. After months of price increases, many manufacturers are now adopting a more optimistic stance.

However, recent reports indicate a cooling market, with both DRAM and NAND prices experiencing double-digit percentage declines. According to analysis from DRAMeXchange, the price of DDR4 8Gb 1Gx8 modules fell by 17.07% to $1.70 in September. Although DRAM prices have steadily increased since last October, a decline of 2.38% was recorded in August this year for the first time. Additionally, prices for 128Gb 16Gx8 MLC modules decreased by 11.44% during the same period.

The consumer PC market has seen a downturn in interest, primarily due to the transition to next-generation standards, which has slowed market momentum significantly. TrendForce notes that PC manufacturers continue to hold high inventory levels, indicating that PC demand has not yet fully recovered. Although PC shipments rose by 4.4% in the third quarter, this growth fell short of expectations, with a majority of the inventory comprising DDR4 products rather than the newer DDR5.

Memory manufacturers are still in the process of inventory adjustments, facing challenges in selling older DDR4 standards while demand for DDR5 modules remains robust. Although DDR5 is becoming the industry standard, it still has a long way to go before it can fully replace DDR4, especially among consumers seeking moderate to low computing performance from their systems.

Overall, the storage market appears relatively healthy in terms of quarterly growth, with the anticipated debut of AI-driven PC products expected to drive increased adoption of next-generation offerings in the future.