On July 14, 2023, memory chip prices continued to fall, a trend that has continued for some time. The main reasons for the decline in memory chip prices are as follows:
< br >
Falling demand: With the slowdown in the global economy, consumer demand for electronic devices has declined, especially for products such as smartphones and PCS. This has led to a drop in demand for memory chips, which has affected prices.
Oversupply: While demand is falling, the oversupply of memory chips is also an important reason. Manufacturers have scaled up production in anticipation of continued growth in demand. However, the reality now is that demand is shrinking, leading to oversupply and falling prices.
The inherent periodicity of memory chips: as a major product, the market size of memory chips has obvious cyclical fluctuations. It usually follows a fluctuation cycle of 3-4 years. At present, it is in a downward cycle, so the price decline is also in line with the cyclical law.
< br >
To sum up, the decline in memory chip prices is the result of a variety of factors. Industry insiders and analysts generally expect that this trend may continue for some time to come. However, with the recovery of market demand and the adjustment of manufacturers, the industry is also expected to bottom out at some point.