Memory prices are slowing because buyers ran out of money
Memory prices are finally slowing down, and the reason is not that supply improved. It is that buyers ran out of money.
TrendForce expects conventional DRAM contract prices to rise 13% to 18% quarter on quarter in Q3. Dan Robinson reported the forecast for The Register. He paired it with separate European shipment numbers that show what the squeeze has done to the market.
The Taiwanese analyst calls that growth rate a moderation, and by recent standards it is. Rising contract prices drove a 59.5% quarter-on-quarter jump in DRAM industry revenue in Q2, to $154.73bn.
Why it is slowing
TrendForce gives two reasons, and the second is the interesting one.
Demand is shifting away from high-capacity RDIMMs towards lower-capacity parts. And then there is what the analyst calls “the limited ability of PC and smartphone customers to absorb further price increases”.
That is a market hitting a ceiling rather...
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