Entry-Level DDR5 Prices Expected To Drop Rapidly This Year

According to a report by DigiTimes Asia, DDR5 memory prices are expected to plunge in the 2nd half of 2022 and continue to drop in 2023. DDR5 contract prices reportedly fell by 20% in July, and chip vendors have begun 'offloading' entry-level DDR5 chips, with consumer DDR5 module pricing at channel distributors falling below that of memory module manufacturers.

DigiTimes say prices will continue to drop rapidly in the second half of 2022 and will hit the "sweet spot" in 2023. Falling DDR5 prices are also expected to boost the adoption rate of DDR5. This is on top of the rapid price reductions on DDR5 this year. Unfortunately, these sources don't say DDR5's sweet spot pricing, but we expect optimal prices to be close to current DDR4 pricing, if not identical.

Despite this, even Intel will also benefit from the DDR5 price reductions. Intel has already supported DDR5 for almost a year with Alder Lake, but due to pricing issues, most of Intel's user base has stuck with DDR4 instead of moving to DDR5.

Aaron Klotz
Contributing Writer

Aaron Klotz is a contributing writer for Tom’s Hardware, covering news related to computer hardware such as CPUs, and graphics cards.