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DRAM contract prices continued their growth in August with prices for 4GB modules reaching as high as US$14, according to DRAMeXchange.
"DRAM prices in August were on an upward trend as they were in the previous month," said the memory-price tracking service. "The monthly average of contract prices for 4GB modules (DDR3 and DDR4) rose by 2% sequentially to US$13.5, while the monthly high rose by 3.7% sequentially to US$14."
Some PC-OEMs purchased 4GB modules at a low price of US$13 in August due to agreements they had made with suppliers in previous quarters. However, contract prices continued their growth thanks to bullish demand, DRAMeXchange indicated.
"With the official launch of the next iPhone release on September 7, the entire smartphone supply chain is now under a critical period of intense stock-up activities," noted Avril Wu, research director of DRAMeXchange. "At the same time, there is still high demand for memory components from China-based smartphone brands."
Wu continued that demand for servers has also heated up recently boosting prices for server DRAM. "Contract prices of server DRAM finally stabilized in August and even rose 1-3% against headwinds compared with the prior month," said Wu. "After suffering quarterly price decreases of over 10% during the first half of this year, server DRAM finally got off the downtrend."
Major DRAM suppliers have reallocated more of their production capacities for production of mobile and server products, leading to tight supply of PC DRAM chips, DRAMeXchange said. Facing the shortage, several PC OEMs are willing to pay as high as US$14 to reserve additional DRAMs in the third quarter, DRAMeXchange indicated.
DRAMeXchange expects DRAM contract prices to edge higher with larger increases in the fourth quarter of 2016.
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