DRAM Pricing downturn started, and Smartphone demand weak

DRAM

Based on the current CQ3 price negotiate status, the DRAM ASP might decline single-digit in CQ3 due to weak smartphone demand and weak server demand.
The Notebook demand seems good until CQ3 and the average content is better than expected in 1H20.
Some order cut occurred from the Datacenter in CQ2 and CQ3, both supply-side and demand-side situation are negative to the RDIMM price trend.

Regarding the Channel status, the 618 event consumed some of the channel inventory and the ASP is relatively stable during this event.
The original Brand 8Gbit DDR4 x8 component is around $2.8 as the low price and the white brand 8Gbit DDR4 x8 component is 2.4 as the low price.
The limited supply of the RDIMM downgrade component influenced the white brand market so well.

The consumer market remained weak, the ASP for OEM adjusted down in this month and expecting a flat price in CQ3 compared with June price.

NAND

The potential order cut from smartphone vendors after the CQ3 price negotiation with memory vendors.
COVID-19 impact still exists and the consumer market remained weak.
eMMC market demand stay weak and the market price is lower than the official price, the low price MLC wafer keeps supplying to the market in this month.
The UFS ASP might down low single-digit in CQ3 as smartphone demand weak.
In addition, some vendor may have to sell wafer to the market in order to meet sales targets and lower down inventory pressure in CQ3.

During the 618 event, channel SSD demand seems well and consumed some of the channel inventory, the channel SSD is relatively stable so far.
The CQ3 OEM price negotiation is not finished yet, some dealt at flat price so far. However, some module houses offered lower price in order to sell more bit.
In general, we may expect slightly down for CQ3 OEM SSD price. Moreover, the potential weak PC demand in CQ4 would be a pressure to the SSD demand.