Anticipated Price Increases for Hardware Components, Including DDR4 and DDR5 Memory Modules

It appears that most hardware components are expected to witness price hikes towards the end of 2023, primarily due to the declining economic situation, this trend extends to DDR5 and DDR4 memory modules in the fourth quarter of this year.

According to the latest report from Technavio, the consumer DRAM market is expected to see an increase in prices by up to 8%.

In addition, there will also be an 8% increase in the prices of Random Access Memory (RAM), leading to a slight inflation in the prices of gaming graphics cards and laptops at the beginning of 2024.

The report attributes this price hike to Samsung’s recent reduction in DRAM memory production.

Consequently, manufacturing companies planned to raise the prices of consumer DRAM memory contracts to avoid financial losses.

This would result in a modest increase of 3% to 8% in prices, as expected due to the sustained low demand.

The OEM DRAM memory market follows a similar trend, with expected price increases for DDR5 memory modules ranging from 3% to 8% and up to 5% for DDR4 memory.

One factor contributing to the price hike for DDR5 memory modules is the launch of new central processing units (CPUs) this year, such as Intel’s Raptor Lake Refresh processors and AMD’s Ryzen Threadripper 7000 processors.

Price increases will also encompass Random Access Memory (RAM) like GDDR6 and GDDR6X due to consumer interest in purchasing high-priced graphics cards, resulting in increased demand for 16GB GDDR6 memory chips. This is expected to lead to a continued increase in the prices of these memory modules in 2024.

The report also indicates that there won’t be any price increases for DDR4 and DDR5 memory modules in the server DRAM market. One of the primary issues facing DDR5 memory for servers is its lower adoption rate than expected. It has been reported that only 15% of the total inventory of server-specific DDR5 memory was utilized in the third quarter of this year, which is an unusually low figure.

These figures suggest that the market for discrete graphics cards and gaming laptops, along with DDR5 and DDR4 memory modules, will experience price hikes in the near future.