[News] PC DRAM Pricing Increased 20% Between September, October 2016 - TrendForce

[StyM]

https://www.techpowerup.com/231768/p...016-trendforce

DRAMeXchange, a division of TrendForce, today reported that the average contract price of 4GB PC DRAM modules increased over 20% between September and October of 2016 (jumping from US$14.5 to US$17.5) as DRAM suppliers completed their fourth-quarter contract negotiations with first-tier PC-OEMs.

These increases come as the result of production capacity gradually shifting from PC-centric DRAM towards mobile and server DRAM, which have seen tremendous growths in demand. In fact, PC DRAM memory accounts for less than 20% of overall DRAM production. The already low inventories of branded device makers go hand in hand with higher-than-expected demand for DRAM-carrying products. And this higher demand comes after the PC DRAM market being severely undersupplied in the second half of 2016. The result: an across-the-board price upturn for all types of DRAM.

TrendForce reports that this DRAM price increase also stands as proof of the changing paradigm between the three top memory makers: Samsung, Hynix, and Micron, which TrendForce reports have "opted for co-existence as the best way to maximize their own profitability." They are, therefore, "turning away from aggressively competing for market share through price reduction and capacity expansion."

TrendForce's report goes on projecting that the top three suppliers will either keep their capital expenditures for 2017 at the same level as this year or lower their spending even further. And with the top players in the DRAM production business shifting their consensus from market leader to maintaining profitability, even further price hikes are expected during 2017.

[drmrlordx]

Sounds like a nice way of saying that there's industry-level price collusion. Yay.

[zanzabar]

nand and HDD are having the same collusion problems too.

[Luka_Aveiro]

Here in Switzerland, a value 16gb 2400mhz Cl17 kit from Kingston costed 63chf in June 2016 and now costs 120chf, way beyond 20%.

[StyM]

16gb was @ 64$ last year, now it's 120$...
32gb was @ 112$ last year, now it's 250$...

[Sparky]

Well, they do have to maintain profitability. Can't bleed cash.

Was hoping prices would stay lower, but I suspected they were artificially low and couldn't be maintained.

[zanzabar]

Well, they do have to maintain profitability. Can't bleed cash.

Was hoping prices would stay lower, but I suspected they were artificially low and couldn't be maintained.

i thought that was why the old Taiwanese companies were bailed out and then sold to promos/hynix. ddr4 seams to have the price suck since only the big three (samsung, micron, and sk hynix) are making reasonable parts and they do not do bulk contract pricing.