According to Gartner’s prediction, 2019 will see a sharp drop in prices of RAM and SSD products.
Now the scarcity of supply has led to the price of components increasing. This has made the price of PCs, smartphones and tablets also increase.
According to Jon Erensen, director of semiconductor research at Gartner, the price of memory card in general and NAND flash memory in particular will begin to decline in the coming years and will fall sharply by 2019. These movements can impact the prices of personal computers and mobile devices globally.
As component prices drop, users can gain more when buying components and building their own PCs. However, the price of commercial products depends on the cost of the manufacturer.
Prices of computers and mobile devices may fall back, which is a general trend for many years to come. But some companies will choose to profit rather than bring about price benefits to users, much the same way Apple did. Prices for mobile devices and computers may still be high, but the device will have more memory or higher resolution display.
Since mid-2016, PC DRAM price as been increased twice. A 4GB RAM is now priced at $ 25, up from $ 12.5 2015. In addition, SSD and NAND flash prices have increased at an alarming rate. According to Gartner, the price of NAND flash and DRAM will peak this quarter.
This Gartner study fits the concerns of big manufacturing companies like Lenovo when they are forced to rethink prices of PC products as components prices rise. According to Ron Coughlin, president of HP’s personal systems business, HP has managed to manage costs at higher component prices, but they are turning to premium products to focus on productivity.
Demand for memory will increase in the coming time as technology products become more and more powerful. Apple has added more RAM and storage capabilities to the Mac, iPhone and iPad. Samsung is also preparing to launch a Galaxy S8 + version of 128GB capacity and 6GB of RAM. Virtual reality applications and games are driving the production of integrating more RAM and memory. The PC market is stable, but the demand for DRAM and SSDs is growing.
Jon Erensen says that handhelds, PCs and Internet of Things devices also generate more data, leading to increased demand for flash storage on servers. Analysis and machine-learning also have great demand for memory in data centers. However, high demand will motivate manufacturers to improve their capabilities. Gartner predicts that in 2019, DRAM and NAND flash markets will be more plentiful and prices will fall sharply.
This seems to be a period of the DRAM and NAND flash market. In 2011, DRAM prices fell sharply with supply in excess of demand due to reducing PC demand and the impact of the global economic downturn.
According to Erensen, China has made prices fluctuate abnormally in the semiconductor market. In 2014, they decided to spend $ 150 billion over the next ten years to expand their ability to produce semiconductor components. China’s flash memory chips will flood the market so prices can be dropped.