DRAM Is Not Getting Cheaper Any Time Soon Due To Supply Shortage

Smartphone DRAM Demand Is The Highest

DRAM prices have been skyrocketing these past couple of months and the price of memory has doubled over the last 12 months or so. If you thoughts things would get better then you seem to be wrong in this regard. According to reports, the demand for DRAM is going to increase by 22% this year but supply is only going to increase by 21%.

While the difference might not seem to be significant at first it will be reflected in price increases. The smartphone market is using up the most DRAM.  In Q1 2018 the revenue for the mobile DRAM market was recorded to be 8.435 billion U.S. dollars. While this was a record high, the number is expected to be even higher this quarter. While this is not good at all for consumers, it is great for business for Samsung, SK Hynix and Micron the 3 major DRAM manufacturers in the market.

Recently we heard that it might be possible that Samsung, SK Hynix and Micron are limiting supply on purpose in order to increase prices and hence increase revenue and there was a case going on in order to get to the bottom of this but we have not heard anything that would suggest that this was indeed the case. If this was something that was going on then this is clearly illegal and these companies would have to pay heavy fines.

Keeping all of this in mind, you should not expect DRAM to get cheaper in the upcoming months. Not unless the DRAM manufacturers are found guilty of colluding and are punished by law. For gamers, this means that prices of DDR4 RAM are going to increase over the next few months. They are already pretty high if you ask me and things are getting out of hand.

This could also affect the prices of smartphones but according to the information that I have, smartphone manufacturers are ready to pay more to get DRAM first, and that has been the case for a while now so the smartphone prices might not be affected as much.

Let us know what you think about the DRAM prices and whether or not you have been waiting fro RAM prices to go down in order to upgrade your build or make a new one.

Talha Amjad
Talha has been in the tech industry for the last 6 years and is a current member of the PC master race.