DDR4 RAM Price Drop Continues, Some Kits Down By More Than 50% Since Launch
Since their launch, prices of DDR4 memory modules have been constantly dropping and at a more rapid rate than anyone would have anticipated since it was supposed to be the next-gen RAM technology providing an amazing performance boost over even the highest clocked DDR3 RAMs.
According to recent data from DRAMeXchange, the spot price for a single 4Gb DDR4 DRAM IC dropped 38.62 per cent between June and October. Over the same period, a single 4Gb DDR3 chip’s spot price dropped 29.4 per cent.
AnandTech recently published some price trend graphs of some of the popular DDR4 memory kits including Kingston’s HyperX Fury Black 16GB kit, which was being sold in March for $229 but is now available for only $97. This trend of price drop persists across all RAM manufacturers, bringing the prices down to at least half of what they launched as earlier in 2015 ensuring that more users would jump to the DDR4 bandwagon sooner rather than later.
These price drops can be attributed to the excess supply of DRAMs in the industry and the market is adjusted according to demand and supply. Once 2015 ends and 2016 progresses, these prices are expected to drop even further.
Two major market influencers that have caused an excess of DRAM supply; one is the declines in sales of devices that need to be equipped with DRAM chips (decreased sales of both PCs and tablets), the other big influence on price is that DRAM manufacturers have started to adopt smaller process technology.
Samsung is one such company which attributed to this price drop by moving to the 20nm manufacturing process earlier on and benefitted from reduced production costs while also driving the market. The company controller 46.7% of the DRAM market in third quarter of 2015.