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average selling price of DRAM to fall by 20% in Q1 of 2023 due to excess inventory


Monday, April 3, 2023

If you've been considering an upgrade, now (or very soon) would be the time to finally do it.

One semi-surprising benefit of the global downturn in the PC market is it's making DRAM much more affordable. A new report states that companies that purchase memory from manufacturers such as Micron and SK Hynix have reduced their orders, lowering demand. That caused the average selling price of DRAM to fall by 20% in Q1 of 2023 due to excess inventory. Prices are also expected to fall another 10 to 15% in the next quarter. So, you know what to do: Put a note in your calendar now that reads "upgrade RAM," with the date of June 30.

News about the DRAM industry's woes is detailed in a new report from industry analyst Trendforce, which monitors the PC industry for -- what else? -- trends. Its latest dispatch says that Micron and SK Hynix have begun to reduce DRAM production in the face of withering demand. Memory buyers such as system integrators have been reducing orders for the last three quarters, so it's time for a response. Since demand is low, the only way to get prices back up is to reduce supply, according to the report. However, these things take a while to trickle through the global supply chain, so it's unclear when the impact of these actions will be realized at retail. Therefore, it's unclear if prices will continue to fall into Q3.

One semi-surprising benefit of the global downturn in the PC market is it's making DRAM much more affordable. A new report states that companies that purchase memory from manufacturers such as Micron and SK Hynix have reduced their orders, lowering demand. That caused the average selling price of DRAM to fall by 20% in Q1 of 2023 due to excess inventory. Prices are also expected to fall another 10 to 15% in the next quarter. So, you know what to do: Put a note in your calendar now that reads "upgrade RAM," with the date of June 30.

News about the DRAM industry's woes is detailed in a new report from industry analyst Trendforce, which monitors the PC industry for -- what else? -- trends. Its latest dispatch says that Micron and SK Hynix have begun to reduce DRAM production in the face of withering demand. Memory buyers such as system integrators have been reducing orders for the last three quarters, so it's time for a response. Since demand is low, the only way to get prices back up is to reduce supply, according to the report. However, these things take a while to trickle through the global supply chain, so it's unclear when the impact of these actions will be realized at retail. Therefore, it's unclear if prices will continue to fall into Q3.

By: DocMemory
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