After a nearly year-long bull run dubbed the "electronic gold" rally, memory module prices at Shenzhen's Huaqiangbei electronics market have recently plummeted sharply. The market swiftly turned from seeing prices quadruple over six months to a 30% drop in just half a month. On April 8, an on-site visit revealed that mainstream memory products had fallen in price by over 30% within a short span of two weeks.
Price Plunge: Both Branded and Second-hand Markets Affected A company executive from a Shenzhen-based screen matrix manufacturer mentioned that their production requires large purchases of 2GB LPDDR4 modules. Over the past six months, major online retailers frequently showed "out of stock" when placing orders, leading to many customer orders being unfulfilled due to a lack of raw materials. "Although 2GB LPDDR4 is among the lowest-end memory modules, it has been the most scarce over the past six months, with prices soaring fourfold and remaining hard to acquire even at high costs." Now, revisiting Huaqiangbei, the previously scarce 2GB LPDDR4 modules are not only available but have also dropped in price. A stall owner stated, "I have over 100 units of 2GB LPDDR4 in stock. If more are needed, I can arrange additional supplies from other warehouses for next-day pickup. The unit price is 60 yuan, and supply is ample."
Based on interviews at multiple storage product stalls in Huaqiangbei, memory module prices are declining broadly. For instance, a Kingston 16GB DDR4 memory module now sells for 720 yuan, down 380 yuan from 1,100 yuan half a month ago, marking a 34.5% decrease. The second-hand market is also affected. Unbranded second-hand 16GB DDR4 modules are currently priced at 500 yuan, a drop of 200 yuan from 700 yuan two weeks prior, representing a 28.6% decline. Modules from brands like Samsung and SK Hynix, such as 4GB DDR4, are now priced at 130 yuan, down over 30% compared to half a month ago. Several stall owners noted that the recent price fluctuations have been sudden, with declines occurring almost daily. "The prices we quote are only for the day, as no one dares to stockpile now. The market changes every day, and this significant drop has happened in the last half-month!"
Contrasting "Record Performance" of Global Giants with Market "Price Inversion" In stark contrast to the falling prices in Huaqiangbei, global memory manufacturers are experiencing their strongest financial quarter ever. On April 7, Samsung Electronics released unaudited preliminary data showing a 68.1% year-on-year increase in first-quarter revenue to 133 trillion won (approximately 606.2 billion yuan), with operating profit reaching a record 57.2 trillion won, up 755% year-on-year, both setting new historical highs. This performance not only far exceeded market expectations but also continued the strong momentum from the fourth quarter of last year, marking two consecutive quarters of record results. Additionally, SK Hynix's fiscal 2025 report showed revenue of 97.15 trillion won (around 700 billion USD) and an operating profit of 47.21 trillion won (approximately 330 billion USD), with a profit margin of 49%. Micron Technology's fiscal 2026 second-quarter report (covering December 2025 to February 2026) indicated revenue of 238.6 billion USD, a 196.4% year-on-year increase and a 74.9% sequential rise, both significantly surpassing expectations.
Notably, several distributors reported that despite continuous price declines in the retail market, official guidance prices from manufacturers like Samsung, SK Hynix, and Micron remain firm, leading to a "price inversion" where retail prices in the spot market are lower than factory prices. Industry insiders attribute this inversion to financial pressures from high inventory levels. Many distributors indicated that overly optimistic demand forecasts earlier, combined with proactive stockpiling by some channel partners, have resulted in severe inventory buildup in the supply chain. As financial pressures mount, selling at reduced prices has become the only option to improve cash flow. "Currently, channel inventory for memory modules generally exceeds 60 days, far above the safety line. Even if it means selling at a loss, there's no alternative."
The sharp price decline has hit small and medium-sized stockpilers particularly hard. According to sources, one Huaqiangbei merchant accumulated memory modules worth approximately 50 million yuan during the previous price surge, mainly focusing on previously popular specifications like DDR4 16GB and 8GB. Estimating a 30% average price drop over half a month, the paper loss on this inventory is close to 15 million yuan. More worryingly, some small and medium-sized stockpilers used loans to accumulate inventory, engaging in "leveraged stockpiling." If they cannot quickly sell to recoup funds, further price declines could amplify losses. "The issue isn't about how much profit to make, but whether they can avoid a margin call," commented a fellow stall owner familiar with the situation. Some leveraged merchants have begun actively contacting channels to sell at a loss, exacerbating the current selling pressure in the market.
Outlook: Short-Term Correction or Trend Reversal? Merchants are divided on the future market direction. Some advise customers to wait, believing prices may fall further. "Current spot prices are still far from normal levels. All commodities experience fluctuations; prices cannot defy common sense indefinitely." Others, however, suggest that prices may rise again in the second half of the year and recommend buying during the current dip. A memory module seller in Huaqiangbei mentioned that their shop recently moved to a larger stall, doubling its size. They view the recent price drop as a minor adjustment driven by market sentiment compared to the previous significant increases. "We still expect prices to rise this year. For consumers with assembly needs, now is a good time to buy during this slight correction." Some analysts argue that the short-term correction in the consumer memory module spot market does not signal a turning point in the current storage price hike cycle. According to the latest TrendForce report, general DRAM contract prices are projected to increase by 58% to 63% quarter-on-quarter in the second quarter of 2026, while NAND Flash prices across all product lines are expected to rise by 70% to 75%.
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