Massive DRAM Oversupply And Lower Prices Expected in 2019
If you’ve been following the prices for computer components over the past year, it’s hard to ignore the immense price rises of DDR4 memory. Price tags for the identical pieces of RAM practically doubled and in some cases even tripled in a timespan of a couple of months, but it appears that these high prices won’t last for much longer. The manufacturers can’t really complain, as the profit on a RAM kit now well exceeds 50 percent, while it was only around twenty percent back in 2016.
DigiTimes reports that the entire market will have a massive oversupply of DRAM chips in the following year for a couple of reasons. Firstly, current memory manufacturers have optimized their production, resulting in higher production capacities and cheaper manufacturing costs.
The other and the perhaps more important reason is the introduction of a couple of new memory players on the market. Two Chinese companies, Fuijan Jin Hua Integrated Circuit as well as Innotron Memory, will mass produce DRAM memory chips themselves. This would help to meet the demand which should lower prices, and we can assume that the introduction of new competitors will result in a price war as well.
In Western regions, prices for DRAM kits have been decreasing slowly over the past couple of weeks and we can only hope that this trend of price cuts will keep evolving steadily.