Memory Prices Might be Going Down this Year Due To The Increase In Production
If you end up buying RAM later this year to either upgrade your current PC or for a brand new build; you may notice that RAM memory prices are considerably lower than the last few weeks. After facing unprecedented growth over the last year and a half, the memory chip industry seems to be hitting a slump.
According to a report by Reuters, high-end memory prices have gone down by over 5% in that last quarter of 2017 and industry analysts speculate that the growth rate will decline by more than half to just 30% this year.
Bad news for the manufactures but good news for consumers who should expect falling memory prices to lead to sharp declines in the prices all sorts of memory-related products.
Though, don’t be too quick to go on a shopping spree just yet. As volatile as the DRAM and memory market is, it is still unclear what sorts of price drops consumers are exactly in for. In a statement made to Reuters by Yuanta Securities Korea analyst Lee Jae-yun, “Memory chips will likely see a gradual price decline in 2018 if demand remains strong and appetite from severs holds”.
Her statement seems to support industry speculation that the consumer may benefit from reduced prices in certain electronic products, due to this year’s memory price fall.
After experiencing a major boom since mid-2016, growing over 70% in 2017 alone; the over 120$ billion dollar memory chip industry is unable to keep up the pace will shrink, according to most financial markers this year. Also, be sure to check out the best PC games deals that we have compiled for you.
This slump in the industry can be attributed to many factors, one of them being the fall in major memory-chip manufacturer Samsung’s drop in its price of shares. Shares fell almost 8% last week, with one of its rivals SK Hynix, also facing a similar dip of over 6%.
One other main factor is the rise of smartphones in the market, with them accounting for over one-third of the current global memory chip market. Smartphone manufacturers could be using this leverage to pressure suppliers to lower memory prices.
Though, not all is so dark and gloomy in the fast-paced memory chip industry. The supply of NAND flash memory chips is expected to grow over 40% this year. The price of average DRAM memory of new models has also increased by almost 40% from the second quarter of 2016.
According to industry analysts, this strong demand will encourage more investment in the memory chip industry; helping cut production costs and maximizing profits.
You can also check out our Top 5 featured PC builds of January 2018.
What do you think of the recent fall in memory prices? Will the industry collapse under the weight of its own success or will it rise back up? Let us know in the comments below.