As far as memory is concerned, the market in China seems to be in crisis following price cuts. Clearly, the market is taking a dive over there, and in a video, a specialist reseller is in a panic. As things stand, he knows he can’t resell his stock at the expected price. Even so, caution is advised, as the Chinese market is different from the European one. What happens there may not happen here, or may take some time.
DRAM prices plunge in China, ruining resellers?
He had built up a large stock that was now unsaleable!
Clearly, a memory chip reseller is potentially out of business after accumulating a large stock. Unfortunately for him, prices have plummeted and he finds himself with a large stock of unsold products on his hands. He’s been caught up in the wave of falling prices. In fact, as soon as signals of a possible drop appear, some people don’t hesitate to slash prices in order to sell off stocks bought at high prices, which can lead to other sales movements, and so prices fall.
To put it simply, in Shenzhen, prices have dropped from 1600 to 1800 yuan to 1200 yuan (i.e. from around $250 to $175) for a 16 GB DDR5 module. Admittedly, prices are still high compared to what they were, but this still represents a drop of almost 30%. That’s enough to put some people out of pocket.
But demand remains strong on the server side!
But this drop in the consumer sector is only part of the story, since the professional sector is clearly doing well. Unfortunately, it is this sector that is responsible for the recent rise in RAM prices and continues to fuel it. If the consumer sector is cracking, it’s because prices have slowed the market considerably. We’re simply witnessing a correction, albeit a violent one, but a correction nonetheless. The underlying trend doesn’t seem to have changed, at least not yet.
