Contract prices of DRAM products will dip further: TrendForce

Contract prices of DRAM products will dip further in the first quarter of 2019, according to DRAMeXchange, a division of TrendForce.
Server DRAM price forecast
Buyers are now negotiating the DRAM product contract prices as monthly deals, instead of quarterly ones. Buyers have adjusted the prices twice in this November.

The average prices of low and mid-range of 4GB/8GB PC DRAM modules have dropped in November. The contract price of 4GB PC DRAM modules for November has dropped by 3.2 percent from $31 in October to $30 in November.

The average contract price of 8GB PC DRAM modules dropped 1.6 percent from $61 in October to $60 in November.

The selling prices of DRAM would drop by nearly 8 percent quarter on quarter in Q4 2018, DRAMeXchange estimates.

PC DRAM, server DRAM, and specialty DRAM ASPs would all show a sequential fall close to 10 percent.

Mobile DRAM price would drop by 5 percent in ASP, because mobile DRAM products experienced a more moderated price hike during previous undersupply compared with other applications.

PC DRAM prices will decline by over 10 percent quarter on quarter in Q1 2019, because PC DRAM products are sensitive to the change in demand and supply situations. The supply increase, headwinds in the low season, and excess inventories would make the price drop steeper.

Server DRAM products would experience larger price drop due to current high inventories held by server DRAM consumers, the seasonal headwinds and U.S-China trade disputes.

The report said Mobile DRAM products expect a weak price trend in Q4 2018 as shipments of new iPhones have reached its peak, and inventories of Android phones in the channel markets remain high.