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TRENDFOCUS Reports SSD Pricing Increases up to 36%, YoY; 2018 to Offer Respite

Market intelligence analysis company TRENDFOCUS revealed in its latest blog post how SSD market has increased by up to 36% in the last four quarters, with price hikes after prices hikes accompanying increasing demand (and sales) of the speedy storage media. And TRENDFOCUS warns that these price hikes are like here to stay until 2017 has run its course, with projections of price reductions only materializing in early 2018. This should put some brakes towards the trend of including SSD storage on mainstream OEM computers and laptops, as the price increase from adding this type of storage would bring prices beyond the mainstream. Likewise, the aggressive ratio at which SSDs were replacing HDDs as storage media as correspondingly declined a bit, though this move still stays strong and isn't likely to (nor should it) fully subside.

The company also sees an increasing pricing delta between conventional SATA-based solutions and their higher-performing PCIe counterparts, with the pricing of PCIe-based SSDs increasing more than those that leverage SATA connections. TRENDFOCUS reports how 2017 pricing hinges on 3D NAND ramping as predicted this year, with higher prices in the demand-heavy back-to-school season) if this ramp fails. The company still feels confident about an eventual return to quarterly takedowns on SSD pricing, coeteris paribus, come 2018.

PC DRAM Pricing Increased 20% Sep-Oct 2016; Will Continue Rising in 2017 - TrendForce

DRAMeXchange, a division of TrendForce, today reported that the average contract price of 4GB PC DRAM modules increased over 20% between September and October of 2016 (jumping from US$14.5 to US$17.5) as DRAM suppliers completed their fourth-quarter contract negotiations with first-tier PC-OEMs.

These increases come as the result of production capacity gradually shifting from PC-centric DRAM towards mobile and server DRAM, which have seen tremendous growths in demand. In fact, PC DRAM memory accounts for less than 20% of overall DRAM production. The already low inventories of branded device makers go hand in hand with higher-than-expected demand for DRAM-carrying products. And this higher demand comes after the PC DRAM market being severely undersupplied in the second half of 2016. The result: an across-the-board price upturn for all types of DRAM.

TrendForce Reports Global DRAM Revenue Jumped 18.2% Sequentially in Q4 2016

Peak season demand and surging prices for DRAM products across different applications resulted in an 18.2% sequential growth in the global DRAM revenue for the final quarter of 2016, reports DRAMeXchange, a division of TrendForce.

Smartphone shipments peaked in the fourth quarter on account of the traditional busy season. Chinese smartphone brands continued to post strong sales while Apple benefitted from the release of iPhone 7. "Rising demand for mobile DRAM kept squeezing the industry's production capacity for PC DRAM," said Avril Wu, research director of DRAMeXchange. "Contract prices of PC DRAM modules increased by more than 30% sequentially on average in the fourth quarter due to insufficient market supply. Server DRAM lagged behind PC and mobile DRAM in terms of price hike during the same period, but it is expected to catch up in the first quarter of this year."

DRAM Prices to Rebound

Prepare for your RAM to cost you a little bit more early next year! According to the chairman and CEO Simon Chen for Taiwan-based memory module maker Adata Technology the previous cuts in DRAM production will begin to take effect in early January thus effecting the consumers bottom line. He is quoted as saying, "The rebound is mainly because cuts in DRAM output will begin to take effect, PC makers will replenish DRAM inventories and so will buyers on the spot market in January.' He also said, 'PC makers are expected to hike inventory level from two weeks to one month."

Mr. Chen went on to say, "The popularity of Ultrabook PCs will reduce demand for DRAM, but total demand for DRAM will not decrease because of large potential demand for server DRAM arising from fast growth in cloud computing-based applications. However, large demand for Ultrabook PCs will take off when prices fall to US$599 and they are equipped with Microsoft Windows 8." In tough economic times this is a bitter pill to swallow but to be expected given the laws of supply and demand.
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