There are different components in a computer called cores, which are the most fundamental to the operation of a PC. One of the most important is RAM, which temporarily stores information from processor cards, among other things. Well, now we know that the price chips to make RAM memory Ha down 20% in just one month.
You probably remember that after the COVID-19 pandemic, the price of SSDs and RAM dropped. The reason for this is that demand has dropped enormously as many, during the lockdown, upgraded their systems.
Many manufacturers of memory chips for these components sell them at cost and, in some cases, at a loss. Prices, after eliminating excess stocks, increased. But it seems that we find ourselves, once again, in a situation where the price is falling again due to lack of demand.
RAM prices fall
It appears that demand for this component has fallen again, generating a significant drop in prices. Concretely, the big problem lies in DDR4 RAM memorywhich experienced a sudden drop in demand.
According to the DRAMeXchange report, the modules DDR4 8GB 1Gx8 They fell 17% to $1.7 in September. This does not concern the server market, but the consumer segment, well, the computers that users generally buy. This drop in demand is due to the move to standard DDR5 RAM.
He DDR5 standard offers significant improvements over DDR4. Above all, it is the increased capacities per module and the higher operating frequencies that stand out. But know that this standard has much more to offer in the near future.
DDR5 offers Dual Channel compatibility in a module which is only used by the CAMM format, which is still very little adopted. We are also seeing the appearance of the first CUDIMM modules which essentially support transfer speeds close to 10,000 MT/s. Current DDR5 modules rarely exceed 6,400 MT/s.
This is not the only factor that has caused prices to drop. Manufacturers are still in the phase of correcting stocks and the DDR4 standard is old, having difficulty supplying them. On the other hand, the DDR5 standard is the one that is most demanded on the market, which affects the price of memories.
DDR5 is already the leading industry standard, but it’s nowhere near the dominance of DDR4. Although adoption in the consumer market is high, many users are not in the mood to update their systems at the moment.
In contrast, the memory market is healthy in terms of industry growth. The server market is demanding these memories due to the growth of artificial intelligence. In addition, the arrival of PCs equipped with AI portends strong adoption of the latest memory standard.
It is clear that the price of DDR4 can fall in order to sell off stocks, but it will not be the same with DDR5. It is normal that if demand increases, prices will follow accordingly.
