The prices of DRAM chips continue to fall. DDR5 in particular delivers significantly, up to 20 percent. High percentages will follow in this quarter and in the fourth quarter that could be an average of another 15 percent. But DDR4 is also getting significantly cheaper.
High inflation in many countries around the world, coupled with fears about energy costs and more, leave the real Peak seasonie the best selling time of the year for manufacturers turns out to be flatter than ever predicted or seen in previous years. As a result, sales already fell in the third quarter of this year and the market researchers do not expect miracles for the fourth quarter – quite the contrary. As demand has plummeted, short-term sales are being postponed. At the same time, the major memory manufacturers are sticking to their planned expansion strategy, leading to an oversupply of the market with very full warehouses and ultimately falling prices.
DDR5: up to 30 percent cheaper in half a year
The price drop is led by DDR5 memory. The market penetration of this standard is still quite low, but should now accelerate. However, as all DRAM manufacturers are now using these chips to a greater extent in manufacturing, prices continue to fall steadily. Up to 20 percent in the past three months can be increased again by up to 18 percent in the next three months. In the server segment, the chips would even drop in price by up to 30 percent – but there is de facto no platform here that has gone beyond the status of a pre-series model. Intel Sapphire Rapids isn’t coming until 2023, and AMD Genoa isn’t expected to provide the first stats until this year.
DDR4 spot price is going downhill
The price reduction is also clearly visible for DDR4 memory. In percentage, this is pronounced the same way and is stated on the memory exchange by DRAMeXchange acted like that. While the average spot price for a single 16 Gigabit DDR4-3200 chip was just over $7 in early June and $6 in mid-August, it’s now just $4.70. Within a quarter, the price drop here is extremely extreme, especially the collapse in demand in the notebook segment plays a decisive role here.
Currently, however, there is little movement in the end-customer trade. DDR5 memory has become slightly cheaper and DDR4 has also remained at a low level for a few weeks, but mainly present. There are currently 244 DDR5 products in the ComputerBase price comparison that are directly available from stock. The entry-level prices are now 119 euros for 32 GB DDR5-4800, which are offered as a dual-channel kit.
If you want it faster, you still have to dig deep into your pocket. The step from DDR5-4800 to DDR5-5200 is clear, but does not yield much either. DDR5-6000, the next big brand, is at least 100 euros more expensive than the basic variant for a similarly stored 32 GB kit consisting of two modules, and then you have to pay at least around 230 euros.