Memory prices to collapse in second half of 2022, according to Gartner • The Register

DRAM and NAND flash memory prices are expected to drop sharply in the second half of 2022 according to analyst firm Gartner.

In a note published last week and obtained by The register, the company predicts that an “oversupply” of memory chips will grow as demand decreases and supply increases. A “significant drop in prices” is therefore probable, specifies the firm, without offering a more precise estimate of the extent of the drop in prices.

The memo appears to be aimed at hardware manufacturers and advises them to start designing products that either use more memory or keep memory and price the same, but add other components – better processors, batteries, or displays are suggested. – to keep the overall bill of hardware costs the same while making devices more attractive.

Alternatively, the manufacturers can do nothing and profit from the impact of the lower prices on their bottom line.

“Let the equipment nomenclature go down while maintaining the existing price for customers and thus increase margins,” the memo suggests.

The impact of one or the other strategy on the kit Reg that readers buy could be important, as Gartner estimates that memory accounts for 12% of the nomenclature of a high-end smartphone and 35% of the cost of a “basic” handset.

The memo says that memory contributes even more – 40% – to the cost of a two-socket server.

The analyst firm isn’t commenting on what this means for buyers, but The register Imagine that these price cuts will create some interesting opportunities to plan for upgrades or maybe just ensure that suppliers pass on the lower costs for the kit you need at the end of next year.

Rival analyst firm IDC also predicted a turnaround in the chip market, predicting the end of shortages and “potential overcapacity” in 2023.

Unfortunately, Gartner describes market conditions in 2022 as “unusual” – suggesting that cheap memory prices will not be a feature of the “new normal”. ®

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