Quote:Market analysis firm DRAMeXchange says memory prices could drop 15-25% in 2019. Contract negotiations with DRAM suppliers have begun for the fourth quarter, and while prices of PC RAM have remained steady, pricing for graphics memory has begun to recede amidst signs of softening DRAM demand across the board.

The industry is quickly transitioning to new, smaller 1X/1Y RAM nodes that have higher density, but demand is simultaneously flattening. That sets the stage for a pricing slump. Additional fab capacity has also come online, and SK Hynix's new Wuxi fab will begin pumping out bits in 2019. Chinese regulators have also recently met with memory vendors, like Micron and Samsung, to express concerns about the continuing shortage among fears of price fixing, but the impact of those talks on the supply situation remains unclear.

Graphics DRAM pricing has been one of the prime contributors to the recent graphics card shortage, though cryptominers also played a key role in boosting demand beyond supply. The crypto craze has finally petered out as the price of cryptocurrencies plunge at coin exchanges, and the sudden drop in demand has surely had a role in reduced graphics memory pricing.

Quote:The revised forecast from DRAMeXchange shows that the server DRAM and PC DRAM markets could suffer a price drop as great as five percent. The demand in the server space is uncertain, and since the spot prices for DRAM products continue to descend, Korean DRAM manufacturers have adjusted their target prices for the upcoming quarter. Samsung has even gone as far as to slow down its memory chip production with the purpose of keeping prices stable. Meanwhile, the shortage of Intel processors might potentially help lower demand for DRAM products in PCs and notebooks. As for specialized DRAM products, demand has gotten weak and seen price declines since September because of the ongoing U.S.-China trade war.

On the mobile end, the launch of the new Apple iPhone is expected to help boost demand for mobile DRAM products. Nevertheless, the market tends to take a conservative approach when it comes to smartphone sales since iPhones are notorious for carrying eye-watering price tags. As a result, DRAMeXchange states that there is a high possibility for oversupply.