Time to stock up on memory; prices to fall 20% this quarter

Time to stock up on memory; prices to fall 20% this quarter

Contract prices for server DRAM are expected to fall by more than 20 percent this quarter over the same period in 2018, even more than the earlier forecast of 15 percent, reports DRAMeXchange, a division of TrendForce.

The demand outlook remains weak due to high inventory levels, seasonal buying patterns, a tapering in demand, and uncertainties over the U.S-China trade war and the possibility of tariffs.

Mark Liu, senior analyst at DRAMeXchange, said the main reason for price decline is because DRAM makers are having difficulty reducing inventory. The DRAM suppliers’ fulfillment rate went from 90 percent last quarter to 120 percent in this quarter, which means there is an oversupply.

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