05 Nov 2020 -

DRAM price set to slide through end of 2020, says IC Insights

IC Insights predicts that DRAM prices will continue to decline by the end of this year, and it is expected that there will be no significant growth in December of this year, according to this report.

They say the price jump that typically coincides with the introduction of new smartphone models in 3Q and 4Q is not expected due to disrupted buying patterns and cautious discretionary spending.

Copyright IC Insights

DRAM demand and price growth usually occur in the third and fourth quarters of each year, and coincide with the launch of new smartphones. However, the spread of the epidemic has made consumers more cautious in spending. Although the total shipments of 5G smartphones this year are expected to reach 200 million, IC Insights believes that the sales of these leading mobile phones are not enough to make DRAM suppliers’ production capacity in short supply.

IC Insights’ October Update to The McClean Report showed the monthly average selling price (ASP) of DRAM started on a steep downward trend in the second half of 2018 that eventually bottomed out at $3.04 in December 2019. DRAM prices rebounded in the first half of 2020 as memory demand grew for personal and enterprise computing systems after the Covid-19 virus forced a rapid and dramatic shift to online-based education, shopping, and business activity. DRAM demand also came from new data center server computers that were needed to handle the surge of online activity.

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