The ongoing fluctuations in the prices of DRAM and NAND memory chips took another turn this week. After experiencing four consecutive price hikes in 2024, the prices have now dropped by about 20% over the last month, largely due to a decrease in demand.
This decline has been especially noticeable in 8 GB DDR4 RAM modules, with prices falling by 17.07% to $1.70 in September. According to market analysis firm DRAMeXchange, this shift reflects a broader trend of users moving from the older DDR4 standard to the more advanced DDR5.
As demand for DDR4 decreases, manufacturers are left with excess inventory, prompting them to offer discounts and promotions to clear out stock. This leads to even steeper price drops. Meanwhile, the reduction in DDR4 stock is making way for increased demand for DDR5, further driving the adoption of the newer standard.
Despite this transition, we shouldn’t expect significant price cuts for DDR5 modules in the near future, as the market adjusts to this evolving trend.
When will memories be cheap again?
Throughout this year, the prices of DRAM and NAND memory chips have surged by over 50%. This steady rise has been part of a broader effort by manufacturers to recover financial losses that began accumulating during the Covid-19 pandemic. To clear out old inventory and reignite market interest during the pandemic, companies offered significant discounts and promotions. However, from the last quarter of 2023 onward, prices were increased through four consecutive adjustments.
Now, prices have reached a point so high that they are discouraging both the market and consumers. With demand shrinking, manufacturers are being forced to lower prices again.
Despite this, it will take some time before these price reductions trickle down to retail and e-commerce. DDR4 RAM modules and PCIe 4.0 SSDs still dominate the market, and it will be a while before their stocks are depleted and the newer DDR5 and PCIe 5.0 standards become mainstream and more affordable for consumers.
