Soaring DDR4 prices triple initial cost, with no sign of slowing down yet
In a recent development, the prices of DDR4 memory modules in the German retail market have witnessed a significant surge, with an average increase of 50 to 75%. This trend, according to a report by TrendForce, shows no signs of slowing down.
The report, which discusses Breaking News, FSR 4 on RDNA 3 and the "Mouse Revolution" in the CB-Funk Podcast #136, highlights that the rise in DDR4 prices is primarily affecting consumer electronics, not large customers with long-term agreements.
Several DRAM manufacturers have recently delayed or extended DDR4 production, including Samsung and SK Hynix. However, the ongoing high demand and limited supply have kept prices elevated, with spot prices becoming significantly more expensive. Prices in many areas have more than tripled compared to April of this year, and over 100% price increases for DDR4 modules have been observed.
For instance, prices for a 16-GB kit in Germany, which were sometimes below 30 euros in March, have risen to over 60 euros. This price hike has made DDR4 memory solutions barely affordable, as stated in the report.
In contrast, DDR5 prices have remained relatively stable in the German retail market for the past year. However, they were slightly cheaper on average in the spring, but are now almost back to the level of October last year. The time lag between price changes on the Asian exchange and their arrival in the German retail market is approximately weeks.
The comparison between DDR4 and DDR5 prices is made by TrendForce citing figures from the memory exchange DRAMeXchange. It is noted that DDR4 memory is almost twice as expensive as DDR5 for larger chips and modules.
Despite the postponement of DDR4 production by Samsung and SK Hynix, which has only briefly calmed the tense market, the prices for DDR4 continue to rise significantly. No major changes are expected for DDR5 products in the short term in the German retail market.
TrendForce predicts that the high prices of DDR4 memory will persist for the foreseeable future, making it a challenging time for consumers looking to upgrade their electronic devices.
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