The demand for DDR5 memory is apparently far below expectations. The background, of course, is the ongoing geopolitical tensions, which ensure that hardly any PCs are sold due to inflation and the resulting sharp drop in demand.

Like the Taiwan branch service DigiTimes reports, the transition to DDR5 RAM is anything but expected. Manufacturers, like their suppliers, are stuck with their products after they had actually expected demand to develop well. Even in the server industry, DDR5 is only spreading very slowly, according to information from the branch.

PC demand and thus also interest in DDR5 will probably be poor until 2024

The sources are currently assuming that the situation will not improve until 2024. Demand from end customers is poor, also because the market situation means that existing PC systems are used for much longer. Because the economy is weakening worldwide and the large technology groups are trying to reduce their costs, significantly fewer server systems with DDR5 RAM are also being purchased.

In the server market, according to the companies specializing in this, the situation should improve much earlier than with client PCs. In this area, an increase in market penetration to around 25 percent is already expected in the second half of the year, although it remains to be seen whether the prospects will actually improve.

Many tech companies have recently begun to slash spending, causing thousands of employees to lose their jobs. Although the memory manufacturers have already lowered their prices for DDR5 RAM so much that the difference compared to the older DDR4 memory has shrunk significantly, but even this has not yet caused customers to strike on a larger scale.

Summary

  • DDR5 demand falls far short of expectations, inflation and slump in PC sales
  • Changeover is slow, server industry as well, improvement only in 2024
  • Bad end customer demand, PC systems are used longer
  • Server market to improve earlier, market penetration 25% in 2nd half of 2023
  • Technology companies cut spending, many employees lose jobs
  • Prices lowered, difference to DDR4 shrunk, customers hesitate

See also:


Pc, memory, accessories, ram, peripherals, ddr4, ddr5, pc accessories, ddr3, ddr2

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