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Wait on That RAM Upgrade! Prices Set To Nosedive in H2

By - Source: IHS | B 62 comments

Market research firm IHS said that oversupply in the DRAM market will be sending prices for memory chips into a steep decline in Q3 and Q4 of this year.

DDR3 memory sold for $2.10 per 2 Gb in the second quarter, but has dropped 24 percent to just $1.60 recently. By Q4, the price could hit $1.25, which is down from $4.70 one year ago.

“Contrary to typical seasonal patterns in which prices are very soft during the second quarter, that period this year saw relatively flat, unchanged DRAM pricing compared to the first quarter,” said Mike Howard, principal analyst, DRAM and memory, at IHS. “However, companies did not capitalize on the healthy pricing levels to increase shipments in the second quarter—which, in retrospect, may have been the best time to do so.”

While the DRAM industry is used to pricing challenges and cut-throat competition, the current environment is amplified by bloated inventory and challenges in transitioning to new process technologies, IHS said. “The third quarter is shaping up to be pretty bloody for DRAM makers,” Howard noted. “The combination of inventory reductions by DRAM makers and more bits coming out of the fabs is resulting in a very soft pricing environment.”

IHS expects a 15.9 percent shipment increase in shipments in the third quarter.

The market research firm believes that cutbacks in production as well as DRAM manufacturers shifting their focus to flash memory may help stabilize DRAM prices again. However, OEMs and consumers should be able to get their hands on much cheaper DRAM in the second half of the year for now.

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  • 27 Hide
    amk-aka-Phantom , September 1, 2011 11:31 PM
    Sweet, I don't need more than 8GB, but... why the hell not? :D 
  • 24 Hide
    stingstang , September 1, 2011 11:24 PM
    yea well...how about releasing ddr4 already? That will get the market going again.
  • 21 Hide
    kcorp2003 , September 1, 2011 11:17 PM
    awesome news :) 
Other Comments
  • 21 Hide
    kcorp2003 , September 1, 2011 11:17 PM
    awesome news :) 
  • 8 Hide
    Lunarion , September 1, 2011 11:22 PM
    This is great for those who are building a new machine with the bulldozer chips like myself!
  • 24 Hide
    stingstang , September 1, 2011 11:24 PM
    yea well...how about releasing ddr4 already? That will get the market going again.
  • 16 Hide
    aft_lizard01 , September 1, 2011 11:31 PM
    I just spent $59 for 8GB of ddr3..how much lower could they go?
  • 27 Hide
    amk-aka-Phantom , September 1, 2011 11:31 PM
    Sweet, I don't need more than 8GB, but... why the hell not? :D 
  • 3 Hide
    RADIO_ACTIVE , September 1, 2011 11:36 PM
    hmm might upgrade to something with better timings
  • 7 Hide
    chickenhoagie , September 1, 2011 11:38 PM
    Wow..built my computer no more than a year ago and spent $105 on 4GB of DDR3 1600. Fml..oh well. time to upgrade to 8GB I guess:) 
  • 3 Hide
    jhansonxi , September 1, 2011 11:38 PM
    Out of slots on my Asus MB. Using Kingston DDR2 ECC (non-registered) with my Phenom 9550 but maybe it's time for a new CPU+MB+RAM.
  • 15 Hide
    Nakal , September 1, 2011 11:40 PM
    aft_lizard01I just spent $59 for 8GB of ddr3..how much lower could they go?



    I saw 8GB for $29 on Newegg recently.. lol
  • 4 Hide
    blader15sk8 , September 1, 2011 11:44 PM
    aft_lizard01I just spent $59 for 8GB of ddr3..how much lower could they go?


    I've been seeing them for 35 after rebate or 45 no rebate every week. Espeically in Newegg's shell shockers deals.
  • 3 Hide
    Anonymous , September 2, 2011 12:00 AM
    soldier37: 16GB of DDR3 1600 is already piss-cheap today, I'm not sure what magical pricepoint you're hoping for...
  • 8 Hide
    PennyLife , September 2, 2011 12:10 AM
    Yea I feel like RAM is the component where I've seen the biggest price drops over the last year. I built a computer in probably April 2010, paid $170 for 6GB of 1600MHz DDR3. Built a computer last week (August, 2011), paid $65 for 8GB of 1600MHz DDR3 (low voltage ram, too).
  • 4 Hide
    eddieroolz , September 2, 2011 12:19 AM
    If prices drop enough I can pick up a 4GB DDR3 SODIMM for my laptop.
  • 3 Hide
    brennon7 , September 2, 2011 12:25 AM
    Sad, I paid about $190 for 6gb of cas6 1600mhz ram... don't think you can even buy cas6 today.
  • 3 Hide
    RazberyBandit , September 2, 2011 12:31 AM
    RAM prices have already dropped significantly over the last year, with DDR3 prices well below what DDR2 prices were two years ago. (Prior to the Q3/Q4 2009 RAM price increase).

    If RAM gets much cheaper, vendors may as well give it away...
  • 0 Hide
    skaz , September 2, 2011 12:44 AM
    I hope the 12 GB, CL 7, triple channel kits drop drastically. They still hover well over a hundred dollars.
  • 13 Hide
    QEFX , September 2, 2011 1:04 AM
    Amazing how cheap ram has gotten. I would like to see 8GB & 16GB modules get to market. At $1.25 for 16GB, that's only $20. I'd pick up enough to fill every slot on every system I have access to. Not that I can think of anything, even from Microsoft, that could use 3 or 4 sticks of 16GB.

    I still remember back in the day getting an amazing price on 4 MB simms (early 486 days) $351 (inc tax) each, if I bought enough to max out my workstation (16 slots) - $5,616. Now you can get 1000x that amount for under $100.
  • -3 Hide
    Flameout , September 2, 2011 1:36 AM
    i wonder what this means for bloatware...
  • -7 Hide
    pjmelect , September 2, 2011 1:45 AM
    DDR and DDR2 prices are still very high. I would have thought that there would be more profit in making these older chips.
  • 10 Hide
    JOSHSKORN , September 2, 2011 1:48 AM
    Time to build that 24 GB RAM machine I've always wanted. Oh wait...apps are still 32-bit. Useless!
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