The shift from computer memory oversupply to a high demand situation in the global market will result in price increases. This will impact the pricing of DRAM, NAND, graphics cards, flash drives and micro SD cards.
After enjoying discounts of 50% and more on computer memory products since the end of 2021, the party appears to be over for now. Micron announced an immediate price increase on their Crucial memory line, with Adata, Corsair, Kingston, Samsung and the other computer memory manufacturers expected to follow suit.
Most modern electronic items – gaming consoles, mobile phones, set top boxes, television sets, vehicle computer systems, etc. – rely on memory modules and their prices might be impacted even before Father Xmas’s visit.
The price movement is not unexpected. International market analysists have been predicting the price increases for some time. In June 2023, Yole Group analysts Mike Howard explained the market conditions –
As prices deteriorated… suppliers further reduced their production plans for 2023; ultimately nearly all memory suppliers cut investment and reduced fab utilization. The result has been an unprecedented slowing of memory bit production growth in 2023, -9% y/y growth for DRAM (down from ~21% average over the prior 7 years) and -5% y/y growth for NAND (down from ~36% average over the prior 7 years).
He continues –
Today, production cuts have set up suppliers to reach a sort of market balance by year end and prices will start to climb ahead of the anticipated balance. But don’t expect suppliers to immediately increase spending and production growth. This has been a downturn the likes of which hasn’t been seen in 15 years and will need time to replenish their coffers before pouring money back into fab conversions and greenfield wafers. As such, 2024 will be a year marked by undersupply and climbing prices.
Mike Howard, Yole Group
See the complete article on the Yole Group website.
Why does the price of memory fluctuate?
Crucial explains memory price fluctuation. –
In economic terms, computer memory is a commodity, meaning that it’s heavily influenced by supply and demand. Similar to how the trading price of gold, oil, or wheat varies day to day, the same is true of memory. Generally speaking, if there is high supply and low demand for a given module, then price for that module will generally be lower. Similarly, if there is high demand and low supply for a given module, the price will generally be higher.
Crucual FAQ
Last-minute memory module sale
Essential IT Solutions newsletter subscribers and Facebook followers will have noticed that the end-September 2023 promotions leaflet features Zeppelin RAM modules on sale. We suggest you grab whatever memory module upgrade you need right now from the dedicated Memory Category and filter to the Zeppelin brand. There you will find both desktop and laptop memory modules at the sale price while stocks last.
For the record, Zeppelin is made by Jaylin Corporation, a Taiwan manufacturer of memory modules and other computer components since 1994.
We are also keeping all Rogueware Solid State Drive prices at the old price while stocks last. You will find those in the Internal SSD Category.
As mentioned, the computer memory price increases will most likely impact the prices of desktop PCs and laptops as well. Needless to say, this will be the best time to consider one of the refurb desktops and refurb laptops on promotion.
Need more info or need technical advice? Do not hesitate to contact Essential IT Solutions on whatsapp 081 395 8776.
