After an era of elevated prices, researchers finally expect price drops in DRAM modules in various technology market sectors during the second quarter of 2022 in the wake of the Russia’s invasion of Ukraine
Experts at TrendForce recently shared details of their findings and projected that the computer sector will likely be hit the most, with prices of DDR4 and DDR5 DRAM expected to drop as much as 5% to 8% during the quarter.
Fortunately, having already survived the prior two years of uncertainty, the PC industry has built up its own inventory. And de to the war between Russia and Ukraine, PC makers are not planning their back-to-school preparation season, which usually begins in June and entails reserving components, such as DRAM modules, Tom’s Hardware noted.
Overall, the current unpredictability of demand for PC and DRAM has the potential to affect DRAM manufacturer profitability in the long run because there is no telling how long the Russian-Ukrainian war will last and how long their excess DRAM stores will support computer manufacturers. It remains to be seen how PC DRAM prices will be affected over time.
Notably, TrendForce similarly predicted in December 2021 that DDR5 DRAM prices would remain high, long before the war started.
Currently, many other arms of the technology market are tackling challenges of their own, either in figuring out their demand or finding solid replacements for their DRAM options. Server DRAM is expected to see a price decline of up to 5% in the second quarter.
Graphics DRAM is expected to see a price increase of up to 5% due to “weak virtual currency prices in recent months,” according to TrendForce. The DRAM manufacturer Micron is currently working to transition from the usual GDDR6 8Gb option to a 16Gb configuration.
Mobile DRAM pricing is set to decline 5%, with researchers noting that smartphone brands are more likely to be careful with their device planning, adding that the “average memory capacity of a single device has not significantly improved.”
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