DRAM contract prices for the first quarter of 2019 are likely to fall nearly 30% sequentially, according to DRAMeXchange, which estimated previously a smaller 25% decrease.
DRAMeXchange in February already warned of a larger-than-expected sequential decline in DRAM contract prices for the current first quarter. The price tracker again revised its price outlook this quarter judging from the prices set for February.
"Most contracts are now monthly deals rather than quarterly deals, with February even seeing a most unusual, large down-correction in prices," DRAMeXchange noted. "Inventory levels have kept climbing ever since overall contract prices dropped in the fourth quarter of last year, and most DRAM suppliers are currently holding around a whopping six weeks' worth of inventory (wafer banks included)."
Meanwhile, the tight supply of Intel's entry-level CPUs is expected to persist through the end of third-quarter 2019 which may constrain demand for PC DRAM, DRAMeXchange continued. As a result, DRAM suppliers may not be able to boost their sales through cutting their chip prices significantly, DRAMeXchange said.
