Is the computer memory module terminal market crashing? Distributors say upstream suppliers are offloading inventory for cashing out; whether prices will reverse remains to be seen.

For half a year, the price of DDR memory has been rising on one side, but recently, prices in the consumer market have begun to decline.

Media reports indicate that in late March, the mainstream 32GB DDR5 kit prices dropped nearly 30% within a month, with some models even experiencing a single-day plunge of over 100 yuan. Prices for products like DDR4 have also decreased by about 10%.

On March 31, at Shanghai’s Night City Digital Plaza, a reporter from The Paper found a shop owner who had just recycled a batch of used memory modules, with the recycling price at 60% of the previous peak. He was willing to sell them externally at 70% of that price. From conversations with several distributors, it appears that the memory market is not short of stock, but prices are extremely high, leading to a decline in sales. Although prices are currently falling, distributors remain skeptical about a price reversal.

On e-commerce channels, a 16GB DDR5 laptop memory stick now sells for 1,170 yuan, down from 1,300 yuan earlier, a 10% decrease. Customer service said that a significant price drop is unlikely; prices will likely stabilize at high levels.

This price correction shows notable “local” and “structural” characteristics, driven mainly by weak consumer electronics demand and the concentrated release of previously stockpiled inventory.

A memory dealer on Qiujiang Road in Shanghai told The Paper that upstream stockpilers are selling off their inventory to cash out, which has driven down DDR5 prices recently. He also admitted he couldn’t clearly explain why they chose to cash out now.

However, he openly stated that high memory prices have severely impacted his business, with sales dropping significantly from peak levels.

The main reason for the surge in consumer-grade storage chip prices is that storage manufacturers are shifting more capacity toward AI-related products like HBM, leading to a shortage in consumer storage supply and price increases.

But as storage chip prices soar, the negative impact on consumer electronics devices is becoming more apparent. Consumers tend to delay replacing products unless absolutely necessary, which puts pressure on consumer electronics sales.

According to a report by third-party firm TrendForce, global laptop shipments are expected to be revised downward by 14.8% in 2026.

TrendForce states that as the prices of key components continue to rise, laptop brands will gradually pass costs onto consumers to maintain their profit margins. With prices continuing to trend upward, consumer purchasing decisions are becoming more cautious, and the overall momentum for actual shipments will be further suppressed.

Data from China Academy of Information and Communications Technology shows that from December 2025 to February 2026, domestic smartphone shipments declined year-over-year for three consecutive months, with decreases of 29.4%, 15.6%, and 12.6%, respectively.

In overseas markets, memory module prices are also falling. Data from international e-commerce platforms show that the Corsair VENGEANCE series 32GB DDR5-6400 kit has dropped from a peak of $490 to $379.99, a reduction of over $110 per set, a 22% decrease.

Although memory prices have retreated significantly from their highs, industry insiders generally believe this is a technical correction rather than a fundamental industry trend reversal. Upstream manufacturers like Samsung and Micron have not shown obvious price concessions, and capacity remains focused on high-end AI storage, with limited recovery in consumer-grade supply.

According to the latest memory price survey by TrendForce, in Q2 2026, due to DRAM manufacturers actively shifting capacity toward HBM and server applications and employing a “catch-up” pricing strategy to narrow product price gaps, despite risks of shipment reductions in the end market, the overall contract prices for conventional DRAM are still expected to increase by 58-63% quarter-over-quarter. The NAND Flash market continues to be driven by AI and data center demand, with a chain effect of price increases across all product lines, and overall contract prices are projected to rise by 70-75% in Q2.

TrendForce believes that for PC DRAM, although overall demand has declined, manufacturers are reducing supply to PC OEMs and module makers, leading to lower supply fulfillment rates. This forces OEMs to pay higher prices to procure from manufacturers or module suppliers, supporting prices. In the smartphone sector, contract prices for mobile DRAM are expected to continue rising compared to the previous quarter.

However, Zhao Haijun, CEO of SMIC, previously stated during the company’s Q4 2025 earnings call that demand for mid-to-low-end smartphones is expected to bottom out in Q3 2026. He believes that if consumer storage expansion proceeds quickly, within four months, or more slowly, within nine months, wafer fabs can start producing consumer storage chips immediately after delivery. Plus, channel vendors will also release their stockpiles, which could lead to a demand reversal.

The Paper reporter: Zhou Ling