The uncertain of the Macroeconomics slow down the demand.
Weak consumer demand impacted the memory consumption ability.
Enterprise spending on hardware slow down either.
The China 618 promotion hadn’t met the shipment target, the unemployment of fresh graduates’ effected the buying power.
The shipment declined YoY during the promotion period.
DRAM
DRAM contract declined more than expected in CQ3 due to poor market perspective
The third quarter contract price declined more than expected, it could be high single digit to 10%+ QoQ drop.
The most of segments’ demand is under estimation, the PC OEMs adjusted down their annual shipment target again.
The server demand is not as well as expected and consumer demand gets worse.
However, the contract price negotiation just started and it seems it will not be settled in short period of time.
The channel UDIMM price declined significantly, but demand improved slightly,
In this month,
8G DDR4 x8 original brand component declined 10% around.
8G DDR4 x8 ETT/UTT grade component declined closed to 15%.
4G DDR3 x16 original brand component declined mid to high single digit.
4G DDR3 x16 ETT/UTT grade component declined 10%+.
NAND
Nand demand side performed weak and tried to decrease the inventory level
The PC OEMs adjusted their SSD purchasing plan rather than cutting the ASP due to weak shipment and poor perception in CQ2.
In the third quarter, the client SSD contract price may declined 5 to 10%, but it would be more if the suppliers push demand side to pull more goods.The UFS contract price for smartphone may declined around 10% or more in the third quarter.
However, most of the third quarter deal is not final yet, the CQ3 pricing forecast would be adjusted in the future.
The Channel SSD demand slightly improved compared with May timeframe due to aggressive promotion, but the demand is still slow.
The Nand Wafer price declined this month and the demand is still soft.
In addition, the disty is selling wafer with aggressive price, which is much lower than the official price in order to lower down the inventory pressure.