Dram prices have fallen 10 percent last month

Contract prices for dram fell sharply in October. For both 4GB and 8GB modules, this represents a drop in contract prices of just over 10 percent. The cause is overproduction.

Contract prices for 4GB ddr4 modules fell 10.14 percent in October from prices the previous quarter. Contract prices for 8GB modules fell 10.29 percent to $31, from $34.5 in the third quarter. It concerns the prices that manufacturers agree among themselves when purchasing dram.

According to market researcher DrameXchange, reporting on the decline, the price of 8GB modules is falling faster than the 4GB variants and 8GB is on the way to becoming the standard in the mainstream market. According to DrameXchange, memory manufacturers have ramped up production of the 8GB modules in recent times.

This has resulted in an oversupply. In addition, there is a shortage of Intel processors in the PC market, which means that dram manufacturers also deliver less than expected. In the coming quarter, demand for servers and smartphones will also be disappointing, predicts DrameXchange. In addition, many manufacturers would like to get rid of inventories. In 2019, there will be further price declines every quarter, is the forecast.