Smartphone Brands Hoard Mobile DRAM and eMMC/UFS, Prices to Skyrocket 18-23% in 1Q24


December 19, 2023

Smartphone Brands Hoard Mobile DRAM and eMMC/UFS, Prices to Skyrocket 18-23% in 1Q24

Summary: Mobile DRAM and NAND Flash prices are projected to increase by 18-23% in the first quarter of 2024 due to seasonal factors, potential panic buying, and steady production planning among Chinese smartphone OEMs, leading to a widening supply-demand gap and a rise in smartphone memory prices.

  • Projected increase in mobile DRAM and NAND Flash prices by 18-23%
  • Steady production planning among Chinese smartphone OEMs
  • Memory prices acting as the primary driving force behind the upward trend


According to a recent report by TrendForce, the first quarter of 2024 is expected to witness a significant surge in mobile DRAM and NAND Flash (eMMC/UFS) prices. The projected increase is estimated to fall within the range of 18-23%, owing to seasonal factors. However, several market dynamics could further amplify this surge, such as the dominance of a few major players and the possibility of panic buying by brand clients.

The report also highlights the steady production planning observed among Chinese smartphone original equipment manufacturers (OEMs) for the first quarter of 2024. As memory prices continue to rise, buyers are actively ramping up their purchasing efforts to secure competitively priced inventory levels. It is worth noting that the smartphone market has often served as an early indicator of economic downturns, with buyers and sellers constantly adjusting their inventories within the supply chain. As stockpiles reach their lowest points and the impact of reduced manufacturing persists, a robust increase in smartphone memory prices is set to unfold.

In summary, as we enter 2024, memory prices in the smartphone market are expected to rise higher than other sectors. This escalation can be attributed to sustained demand from clients coupled with manufacturers’ slow operational scale-up. Consequently, the supply-demand gap is anticipated to widen, with memory prices acting as the primary driving force behind this upward trend for the season.

Smartphone Brands Hoard Mobile DRAM and eMMC/UFS, Prices to Skyrocket 18-23% in 1Q24

(Source)



Technology Explained


NAND: NAND technology is a type of non-volatile memory that is used in many computer applications. It is a type of flash memory that is used to store data in a non-volatile manner, meaning that the data is not lost when the power is turned off. NAND technology is used in many computer applications, such as solid-state drives, USB flash drives, digital cameras, and memory cards. It is also used in many embedded systems, such as cell phones, tablets, and other consumer electronics. NAND technology is a reliable and cost-effective way to store data, making it a popular choice for many computer applications.



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