SSD and RAM prices to drop because there’s too much supply

It looks like things are looking up for the PC market, with shipment numbers finally showing an increase in the last quarter. This is mainly due to the increased demand for desktops, laptops and even tablets, as the world adjusts to remote work and school settings. Ironically, these same global conditions are causing problems for manufacturers of NAND and DRAM products, such as RAM and SSDs, as there is now an oversupply of these memory components and there is not much demand for them.

You would think that, with the greater demand for computers and mobile devices, there would be a greater demand for the memory chips that you put inside. This may have been true when computer and data storage manufacturers were struggling to meet rising demand earlier this year, but most have already followed suit. In fact, some market analysts predict that the PC market will stabilize or even decline in the coming quarters.

According to reports, manufacturers like Micro and Western Digital have also started to slow down their pipelines to avoid overproduction. Data centers also stocked supplies earlier this year in an overabundance of caution, especially after factories closed in China due to the spread of the COVID-19 coronavirus. Unfortunately, flash memory manufacturers were the last to be able to adjust, leading to an oversupply of memory products that will have to be sold very quickly, very soon.

That means only one thing: a sudden drop in price. Some analysts predict that prices for these components may fall by up to 15% in the coming months. That could mean even bigger and sweeter holiday discounts, at least for consumers.

It is clear that the companies that manufacture these parts are the ones that suffer most from the losses, which is especially painful due to the global economic situation. This excess supply and weak demand is expected to be carried over to the last quarter of the year and may last until the beginning of 2021.

News Reporter

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