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DRAM And NAND Prices Fall
#1
https://www.techpowerup.com/248493/price...hange-says
Quote:Good news for consumers: prices for DRAM memory and NAND flash chips will start falling in the fourth quarter "ending nine straight quarters of growth", and that downward trend will continue throughout 2019 according to DRAMeXchange. Their data shows that average DRAM price will drop by 15~20% YoY in 2019 due to several reasons. Smartphones won't see remarkable shipments next year, for example, but there is also uncertainty in server shipments and the shortage of Intel CPUs could affect notebook and PC shipments. DRAM manufacturers expect a high possibility of oversupply, and DRAM expects the annual bit output to increase by nearly 22%, with the 1X/1Y processes going mature and the wafer starts increasing.

The trend will also affect NAND flash chips, which dropped 10% in price in the third quarter and are expected to fall another 10-15% in the fourth quarter. In 2019 the price decline will be around 25-30% due to increased 3D NAND production capacity, specially since enterprise SSD suppliers will fiercely compete next year. DRAMeXchange mentions the impact of China-US trade war, and alert about the gap between the supply and demand, that "may be moderated if the NAND Flash manufacturers postpone their capacity expansion and transition to 96-layer 3D NAND devices".
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#2
Good news for those that bought machines with minimal memory and need to expand.
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#3
https://www.tomshardware.com/news/ssd-pr...37982.html
Quote:According to a DigiTimes report citing "industry sources" this week, NAND flash prices are expected to continue to drop in 2019 after already seeing a 50 percent drop this year. Earlier reports said that SSD prices could fall to as low as $0.08 per GB in 2019.

The DigiTimes report noted that the continued drop in prices seems to be primarily due to SSD manufacturers expanding their production capacity to increase profitability, as well as the adoption of 96-layer NAND technology. The technology allows for denser SSDs and, therefore, cheaper storage.

Simon Chen, chairman of Adata Technology, a well-known DRAM and SSD maker from Taiwan, said that flash makers have not only continued to increase production capacities for their flash storage facilities, but that NAND flash products may actually see larger drops in prices next year compared to this year.
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#4
https://www.tomshardware.com/news/wester...37985.html
Quote:Western Digital told shareholders this week that it plans to delay the deployment of capital equipment and reduce wafer starts to reduce its output by 10-15 percent for CY19. The move follows a report claiming SSD prices could fall by as much as 50 percent in 2019 as manufacturers outside of Western Digital continue to increase their output, switch to denser storage technologies and contend with increasingly hostile trade environments.
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Declining SSD prices can be great for consumers. We're finally reaching the point where it might be feasible never to buy another HDD. But these falling prices could have significant effects on companies like Western Digital, which announced yesterday that its revenue and operating income fell to $5 billion and $705 million, respectively in the most recent fiscal quarter, compared to the $5.2 billion in revenue and $905 million in operating income from the previous year.
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But the looming trade war isn't the only problem; supply and demand are too. Western Digital CEO Stephen Milligan said on the earnings call:

"This softening demand, in combination with increased flash supply, has led to a market imbalance resulting in a deteriorating near-term flash pricing environment. In response to these conditions, we are making an immediate reduction to wafer starts and delaying deployment of capital equipment. These actions will reduce our wafer output beginning in fiscal Q3 2019. The goal of these actions is to better align our output with the projected global demand for flash. The duration of the planned output reduction will depend upon market conditions and will not impact our ability to meet customer commitments nor will it impede our ability to deliver the most innovative and cost-competitive solutions to the market."
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#5
https://www.tomshardware.com/news/dram-p...38201.html
Quote:DRAMeXchange said in September that prices could drop by as much as 5% in 2018. Now the research group has said that prices could fall by as much as 10% in the first quarter of 2019 for PC DRAM, server DRAM, and specialty DRAM. Mobile DRAM isn't expected to be as drastically impacted because prices didn't rise as much the others. For everyone who doesn't make a phone, though, that's welcome.
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#6
https://www.extremetech.com/computing/28...rice-drops
Quote:According to a new report from Trendforce, memory manufacturers are slowing production to offset the steep decline in price. Contract prices fell 10 percent in Q4 2018 and Samsung, Hynix, and Micron are now on track to spend about $18B on DRAM capacity expansions in 2019. That’s a decrease of 10 percent compared to 2018. Samsung has canceled plans to expand its Pyeongtaek facility. Overall, it looks as though capacity will increase by ~20 percent next year, which is one of the smallest year-on-year manufacturing capacity increases on record. Micron is making even more drastic cuts, with only 15 percent expansion predicted. Don’t feel sorry for the DRAMurai, however — gross margins for Samsung and Hynix remain ~80 percent, while Micron is still above 60 percent. The three firms will attempt to avoid competing dramatically with each other on price by cutting capacity expansion rather than aggressively competing to gain market share at the expense of the other.

DRAMeXchange believes Q1 2019 demand will fall seasonally, but predicts no Q2 recovery yet “due to the looming trade war between China and the U.S.” Contract prices are predicted to fall by a further 15 percent in Q1 2019 and less than 10 percent in Q2 2019, with further declines of 5 percent per quarter “unless the demand is significantly improved.” A resolution of US-China trade tensions could materially change this forecast, however, and the decline in pricing should be good for enthusiasts who have held off on RAM capacity upgrades for PCs due to high pricing over the past 24 months.

It’s not clear how investigations into allegations of price-fixing and market collusion might impact prices going forward. China is conducting an investigation into alleged DRAM price fixing and the head of its anti-monopoly bureau, Wu Zenghou, claimed in November to have “massive evidence” of anticompetitive behavior but did not share specifics past this. The good news is, enthusiasts can look forward to lower RAM prices through at least Q2, regardless of the overall size of the final decline.
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#7
https://www.tomshardware.com/news/nand-f...38415.html
Quote:DRAMeXchange has predicted that NAND flash manufacturers will continue to reduce their capital expenditure (capex) by 2 percent in 2019. The reductions are mostly expected to come from South Korean flash manufacturers, but the research group said that U.S. manufacturers will probably reduce their capex as well, despite global capital expenditure already declining by a reported 10 percent between 2017 and 2018.

The reason for these reductions is simple: there continues to be an oversupply of NAND flash memory. DRAMeXchange said this will probably continue to be the case despite manufacturer countermeasures, simply because "demand outlook for notebooks, smartphones, servers, and other end products remains weak." Tech companies probably aren't going to buy a bunch of memory to put in products they're struggling to sell.
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Their loss could be our gain. DRAMeXchange said that it "expects a quarterly decline of 20% in 1Q19, higher than [the] previous forecast of 10%, and a further decline of nearly 15% QoQ in 2Q19" and that "for 2H19, the price decline may be slightly moderated considering the coming of peak season, but prices would continue to fall by around 10% each quarter." All told, the group's predicting a 50-percent drop in NAND flash prices over the coming year.

Previous estimates put the drop in memory pricing in 2019 anywhere from 10 percent to 25 percent. (Depending on the type of memory.) Watching the higher of those figures double over the course of a few months indicates that NAND flash manufacturers aren't likely to recover from their oversupply woes any time soon. But hey, at least from a consumer's perspective, who doesn't like it when prices fall?
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#8
https://www.techpowerup.com/252576/2019-...fall-by-50
Quote:1-Terabyte SSDs could become a new mainstream-desktop must-have in 2019, as prices of the drives have fallen by 50 percent year-over-year, according to DigiTimes. A 1 TB SATA SSD in the 2.5-inch form-factor can now be had for as little as $99, while faster NVMe drives in the M.2 form-factor start around $130. At the beginning of 2018, 1 TB SATA SSDs used to start around the $160-mark, and NVMe drives north of $200. The 1 TB category includes 960 GB, 1000 GB, and 1024 GB marketed capacities with varying amounts of overprovisioning set by manufacturers.
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#9
https://www.tomshardware.com/news/dram-m...38644.html
Quote:DRAMeXchange, a division of market research firm Trendforce, announced today that it expects contract prices for server DRAM to decrease by 30 percent compared to Q1 2019 prices. DRAMeXchange previously predicted that server DRAM prices would fall over 20 percent in Q1 but is now making its prediction even more dramatic.
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DRAMeXchange said that the DRAM price declines may slow down by the end of the year, when DRAM module makers will have started to resolve their oversupply issues. However, by the end of the year we may be looking at PC DRAM prices that are 50 percent lower compared to a year before, and server DRAM prices may see an even more drastic drop.
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#10
https://www.extremetech.com/computing/28...d-collapse
Quote:To some extent, a cyclical boom-and-bust cycle to the memory business is normal. Even if the market for NAND does continue to slide, we used to see these kinds of business cycles hit the DRAM business on a regular basis. It’s also part of why the DRAM business has consolidated down into a handful of players. If you’re waiting to see what NAND prices do, I don’t think there’d be any harm in waiting another month or two to purchase. If demand is slowly recovering, we should see some evidence of that in Q1 results without prices spiking back up to where they were a year ago. If demand continues to drop, the price of new SSDs is only going to get better.
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#11
https://www.tomshardware.com/news/memory...38746.html
Quote:DRAMeXchange reported that DRAM prices over the current quarter dropped nearly 30 percent, which it said is the "sharpest decline in a single season since 2011," and that drop is expected to continue until consumer demand finally matches pace with supply.

The research group expected DRAM prices to fall 25 percent this quarter. But it turns out that "most DRAM suppliers are currently holding around a whopping six weeks' worth of inventory." (You know something's up when a research group says "whopping.")

This should result in cheaper memory kits, but DRAMeXchange said that Intel's ongoing CPU shortage has weakened demand for DRAM so much that even those low prices are unlikely to increase sales enough to start counteracting memory makers' oversupply issues.
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Samsung had previously said it would slow down memory production to help keep prices stable. Yet here they are in freefall anyway, and those efforts still weren't enough for the company to meet its earnings guidance for the most recent financial quarter.

It's clear that the memory market is changing. DRAMeXchange said that most contracts are now monthly instead of quarterly, prices are dropping faster than anyone expected, and consumer demand for new tech products has fallen for everything from memory to phones.

The upshot? At least DRAM should get cheaper and cheaper for consumers, too, so later this year might be a good time to make a few upgrades to your system. As long as you don't need a new CPU to enable those upgrades, of course. Then you're outta luck.
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#12
https://www.tomshardware.com/news/nvme-s...38898.html
Quote:Over the past several quarters, SSD prices have been in freefall, and they are expected to continue this trend for at least another few quarters, according to recent reports. Industry watchers reportedly believe that these aggressive price reductions in the SSD market will convince customers to buy higher-capacity or higher-performance SSDs, or both.

This week, analyst DRAMeXchange released research saying device makers are putting higher downward pricing pressure on 512GB/1TB SSDs, as they try to increase the “content-per-box.” This should lead to a higher adoption of SSDs in notebooks, as most of them have been stuck with ~256GB SSDs over the past few years, DRAMeXchange believes.
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The sales of high-speed NVMe SSDs are expected to reach 50 percent of the total SSD market by the end of 2019, according to a recent DigiTimes report. Unnamed industry experts told the publication that SSDs' fast price decline will lead many consumers to switch to the much higher-performance NVMe SSDs in 2019.

The price of NVMe SSDs fell 11 percent in Q1 2019, while the price of SATA SSDs fell by only 9 percent, DigiTimes said, citing its anonymous sources. The price difference per GB was 30 percent on average in 2018 but will continue to shrink throughout the year, it added.
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