According to DRAMeXchange, DRAM prices are expected to fall sequentially 4Q18.
DRAM suppliers have begun to negotiate with their clients contract prices for the fourth quarter since the middle of August, according to DRAMeXchange, which expects prices to weaken following nine consecutive quarters of growth.
The weak price trend is due to “increasing supply yet fairly limited growth in demand,” DRAMeXchange noted. Average DRAM contract prices for the fourth quarter are expected to fall 1-3% sequentially, DRAMeXchange said.
Contract prices for PC DRAM and server DRAM memory have risen 1-2% sequentially in the third quarter, while mobile DRAM and specialty DRAM prices have been flat, DRAMeXchange disclosed. Meanwhile, prices for graphics DRAM chips have started dropping in the third quarter.
DRAM spot market prices have been sliding, however, DRAMeXchange continued. Spot prices already fell below the price level in the contract market at the end of June, DRAMeXchange said.
Looking into 2019, DRAM suppliers will continue transitioning to newer 1X/1Y process technologies while SK Hynix’s new fab in Wuxi is expected to come online. As a result, the industry’s bit supply growth is set to be greater than demand growth, which will drag down the memory prices by 15-25% in 2019, DRAMeXchange indicated.
According to DRAMeXchange another news: Global mobile DRAM sales hit record high in 2Q18.
Mobile DRAM revenues amounted to about US$8.87 billion in the second quarter, up 5.1% sequentially and hitting a record high, according to DRAMeXchange.
Mobile DRAM bit shipments and ASPs both registered sequential growth in the second quarter, said DRAMeXchange.
Smartphone unit production increased nearly 3% sequentially in the second quarter, thanks to the launch of new flagship Android models, DRAMeXchange indicated. Besides, 6GB has become the mainstream storage spec for high-end smartphones, while there are more models featuring 8GB of RAM.
Meanwhile, the global supply of mobile DRAM chips remained tight driving up the memory contract prices in the second quarter, DRAMeXchange said.
Despite the availability of new iPhones, the overall smartphone market for the third quarter will grow only modestly, DRAMeXchange noted. Meanwhile, with DRAM suppliers improving their advanced node production yield rates, mobile DRAM contract prices are expected to register flat sequential growth in the third quarter, DRAMeXchange said.
Also judging from sluggish demand in the spot market, DRAMeXchange expects the global mobile DRAM sales to “slacken” in the third quarter.
Industry leader Samsung saw its mobile DRAM revenues increase 5.8% sequentially to US$5.04 billion in the second quarter, according to DRAMeXchange. The company continued to hold a more than 50% share of the global DRAM market in the quarter.