Prices for mobile DRAM memory are set to fall substantially due to excess smartphone inventory, according to sources at memory makers.
Disappointing smartphone sales have led to high levels of inventory in the supply chain, said the sources. Demand for mobile DRAM has therefore been affected negatively with the chip prices coming under downward pressure, the sources indicated.
Mobile DRAM prices are also influenced by PC DRAM prices, the sources noted. With PC DRAM demand falls dragging down chip prices substantially, DRAM chipmakers will allocate more of their available capacities to produce other commodity products mainly mobile DRAM, the sources said.
Since 2015, PC DRAM prices have already gone down with prices for 4Gb eTT DRAM chips falling below US$2, the sources observed.
As a result of more supplies and weaker-than-expected demand, prices for mobile DRAM chips are set to fall along with PC DRAM prices, the sources suggested.
The sources also expressed pessimism about the outlook for server DRAM, specialty DRAM and other niche-market DRAM prices, influenced by falling PC DRAM prices. The DRAM industry could be again trapped in a vicious circle, following three years of prosperity, the sources said.
