Drama prices fall while nand remains stable

DRAMeXchange said in two reports this week that DRAM prices fell nearly 10% in the second quarter of 2019 as supply continued to outpace demand, but NAND prices remained stable, thanks, at least at In part, a June outage at Toshiba's production facilities reduced supply enough to keep prices in the same quarter the year before.

DRAM module prices continue to fall, according to report for the second quarter of 2019

The continuing drop in DRAM prices is not so surprising to anyone who has been buying PC memory lately. A small increase experienced after Japan limited its exports to South Korea was only temporary, according to DRAMeXchange, and was not enough to overcome the basic oversupply problems that the market has experienced for several quarters. Any production problems resulting from Japan's restrictions were minor compared to falling demand.

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These factors contributed to a drop in consumer commodity, server and DRAM prices of almost 30%. DRAMeXchange said mobile DRAM was the exception, as its decrease was only 10-20%. Server DRAM was the worst, down nearly 35% quarter-over-quarter. These drops led to a decrease in global DRAM revenues of 9.1%, as well as lower profit margins for companies like Samsung, SK Hynix and Micron.

The firm said it expects DRAM prices to continue falling in the third quarter of 2019.

On the other hand, DRAMeXchange said that "the final demand in the smartphone, laptop and server markets has recovered from the traditional low season of 1Q19" , so the consumption of bits increased in the second quarter. NAND prices were unchanged in the second quarter.

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