DDR5 Memory Prices Drop Significantly After Falling Consumer Demand

AMD has apparently taken a shot with its Zen 4 timeline, thinking DDR5 memory prices will hold steady in the coming weeks, close to the time the Zen 4 is expected to ship. DDR5 memory prices seem to have fallen; In this quarter alone, prices have fallen by as much as 8 percent and are expected to fall further in the next quarter by as much as % percent due to inflation.

On top of the price drops, there is more contributing to this change in the landscape; the proliferation of more and more DDR5 memory kits coming onto the market. This seems to be a very different case and nothing compared to what the market looked like in November last year when Intel released its 12th generation Core Alder Lake processors. The memory kits were sold on eBay for up to USD 2,400 at the time.

Intel was able to reap the rewards at the time and still does based on the fact that Alder Lake has optional DDR5 memory. This means that, depending on the motherboard type, your Alder Lake can also be paired with a DDR4 memory. However, the case with Zen 4 is quite the opposite, as AMD only supplies the DDR4 memory. Thus, in order to trade in AMD’s favor, the DRAM market must be in a favorable position.

According to TrendForce, “In terms of PC DRAM, the continued weakening in demand has caused PC OEMs to adjust their annual shipping targets and also rapidly increase DRAM inventories… as the overall DRAM industry continues to be oversupplied, even if the demand for PCs is slow, suppliers still encountered difficulties in reducing their PC DRAM inventory resulting in a slight quarterly increase in the number of bits supplied, therefore the price of PC DRAM is predicted to increase by 3 to 8 percent will fall.”

TrendForce shared that the price of DDR4 memory is down 5 percent this quarter and DDR5 memory is down 8 percent. The forecast for the next quarter shows a further downward trend for both memory kits. So by Q2 and Q3, both memory kits will see a price drop of nearly 13 percent.

Via Trendforce

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