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DRAM price may drop by about 0 to 5% in Q2: TrendForce

TrendForce released a report saying that the overall average DRAM price in the second quarter is expected to drop by about 0 to 5%. The reports pointed out that due to the slightly high inventories of buyers and sellers, coupled with the recent impact of the Russian-Ukrainian conflict and high inflation on the demand side of PCs, laptops, and smartphones, consumers’ purchasing power has been weakened.

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Moreover, the server-side is the main source of memory demand, so the overall DRAM supply is still oversupplied in the second quarter. TrendForce said that in terms of PC DRAM, the conflict between Russia and Ukraine has caused PC OEMs to adopt a conservative stocking strategy for orders in the second quarter, which may continue to affect the order situation in the peak season in the second half of the year.

Furthermore, the overall supply of bits is still growing, so the price decline of PC DRAM in the second quarter further expanded to 3 to 8%, and may further deteriorate. Terms of Mobile DRAM is affected by many factors such as high inflation, changes in the epidemic situation in various countries.

In the conflict between Russia and Ukraine, it is not ruled out that the production volume of smartphones may continue to decline, and the brand side is bound to plan production and material preparation more carefully. It is expected that the oversupply will continue in the second quarter, with a decline of about 0 to 5%.

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