DRAM Shortage to Keep Memory Prices High Through 2028

0521 GMT - The DRAM shortage will likely keep memory prices high through 2028, but the momentum could ease as device leaders push back, Morningstar analyst Phelix Lee says in a note. Long-term agreements restrict South Korean memory suppliers from aggressively raising prices, he notes. Meanwhile, China's CXMT has locked in competitive prices despite its lagged technology, thanks to looser contract terms, the analyst says. Price hikes for conventional DRAM could slow further as device makers like Apple face sharp margin compression and increasingly push back on further rises, he adds. Lee expects memory makers to continue experiencing robust margins over the next two years, but further upside is limited.