DRAM contract prices settled in first half of October

The average 4GB contract prices reached US$ 32.75, an increase of 2.34%, while the lowest contract prices came to approximately US$ 32.5, up 4.84%. Notably, this month, an increasing number of agreed prices have begun to move from $US 31, the lowest price point from the third quarter, towards $US 33, the highest. The revenue gains that came with the recent wave of price growth will gradually become more apparent during the fourth quarter of this year. Looking ahead to the fourth quarter, TrendForce believes that October prices will continue to rise even as the PC market enters its traditionally slow season. Those price increases will occur primarily because demand for mobile DRAM and server DRAM is robust, but supply will be limited as manufacturers adjust capacity. DRAM capacity adjustments to continue as October contract prices remain steady In the coming quarters, all three of the DRAM industry's main manufacturers are expected to ramp up production as Apple raises its shipment targets for the iPhone6 and iPhone6 Plus. With Apple's soon-to-be announced iPad Air2 set to use chips featuring 2GB of RAM, the said manufacturers are also expected to allocate capacity to Mobile DRAM. Additionally, the server market is performing better than average for the off-peak season. The prices for server DRAM have also increased for three consecutive months. As a result, the R-DIMM 16GB price has managed to reach up to US$ 140. Given the crowding out occurring in the market, DRAM contract prices in October are expected to surpass those of the third quarter even as the PC market enters the off-peak season.