The DRAM and NAND industries are currently facing a sharp decline in consumer demand, with contract prices dropping nearly 20% in just one month, posing significant challenges for memory manufacturers.
DDR4 memory modules are particularly difficult to sell, leading to increased inventory pressure. In response, manufacturers have been forced to lower prices to clear excess stock.
This price drop follows a volatile period for the DRAM market, where demand significantly declined after the COVID-19 pandemic. Initially, manufacturers attempted to address inventory levels by offering discounts, which briefly allowed prices to rise again; however, the situation has since turned.
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A report from The Elec indicates that the market has cooled, with DRAM and NAND prices experiencing double-digit declines. According to analyst firm DRAMeXchange, DDR4 8Gb 1Gx8 modules experienced a 17.07% price drop in September, reducing prices to $1.70. The decline in demand is primarily attributed to consumers transitioning to next-generation memory technologies.
The growing adoption of DDR5 memory is also contributing to the drop in DDR4 prices. While DDR5 is gaining traction, it has not yet fully replaced DDR4, particularly among consumers seeking more affordable mid-range performance systems. This leaves manufacturers struggling to sell older DDR4 inventory, despite the rising demand for DDR5.
Despite these challenges, the memory market is expected to see positive growth in the upcoming quarters. With increasing interest in AI-powered PCs and next-generation products, industry experts are optimistic about a rebound in demand, providing a more hopeful outlook for the DRAM and NAND sectors in the near future.
