Uncertainty has reached manufacturers of PCs and OEMs, where forecasts were already a bit tricky for them and the power cuts that have affected (coincidentally, because it would not have been possible otherwise) Samsung have sounded alarms in such a market. is as complex as that of RAM.
The research phase of DRAMeXchange, TrendForce, has released a new report based on these facts and, as we shall see next, is a common scenario of selective distrust.
Memory buyers are increasing their purchases due to possible shortages
Any small details can wake up the RAM market today, the tension is endless and the problems with AMD and Intel supply do not help alleviate it. To a degree like this there is uncertainty, that we should talk about specific sectors instead of the general market.
Therefore, TrendForce claims the contract price forecast of 1Q20 in PC DRAM, Mobile DRAM and DRAM «Special», after reviewing previous reports from "slow down" to "quite stable or high".
The problem with understanding this is that you have to be specific when it comes to categories, because trends are now looking at each direction depending on where we are looking. We will obviously focus on the PC DRAM market, where the Samsung power outage on December 31, 2019 did not significantly impact the existing market segment.
Prices will increase with the cost of keeping the product produced
This has the opposite effect on demand, because limited growth in DRAM supply, consumers are slowly increasing the number of final orders for bulk inventory. This logically has a direct impact on prices, which has shifted from the determination of the probability of this quarter to the slightest increase.
Although the number of shipments of laptops and PCs th is quarter is expected to be lower than in other years, OEMs are under great pressure due to suppliers reducing and limiting RAM production.
Therefore, they are forced to extend orders to ensure shipping of their products and they may be lacking. And reports are reporting a reduction in RAM production at 13% annually.
Samsung's downturn has brought this sector to a particular alarm, where contracts signed this quarter could be a huge boost to this, leading to higher consumer prices, but also guaranteeing a minimum of manufacturers.
This fact was scheduled for the second quarter, so in advance of the bad news for users, we now need to know, if they fail to save costs, Prices will increase and how it will affect everyone.