DRAM prices expected to rise 13% to 18% in third quarter

DRAM contract prices are expected to rise between 13% and 18% in the third quarter compared to the previous quarter, according to TrendForce. While this represents a moderation compared to the massive 59.5% jump in DRAM industry revenue seen in the second quarter, supply tensions remain high as supplier inventories are at historic lows.

The slowdown in price growth is attributed to the limited ability of PC and smartphone customers to absorb further increases, rather than an improvement in supply. Demand is also shifting from high-capacity RDIMMs toward lower-capacity components.

In Europe, the rising costs of components are expected to significantly impact hardware sales. Market intelligence firm CONTEXT forecasts that European laptop shipments will decline by 6.4% year-on-year in Q3 and by 20% in Q4. Desktop shipments are projected to face even steeper declines, falling approximately 20% in Q3 and nearly 30% in Q4.