The transition from DDR4 to DDR5 memory was expected to be quick and easy. However, new memory hardly penetrates the market, sales are lower than predicted. As a result, computer stores and distributors have accumulated quite large balances in warehouses. The reason is low demand. Today, consumers are trying to save more, as almost everything becomes more expensive, so investments in a new PC are pushed back to an indefinite future. In addition, many consumers have already bought a new PC during the coronavirus pandemic. Therefore, they do not want to spend money on an upgrade, just the purchased hardware will work longer than usual.
There are also structural factors. That is, you can’t just take and install DDR5 memory in an old system. You will need a new motherboard and a new processor. Therefore, manufacturers of DIMM DDR5 can cut prices as much as they like, but this does not help much.
Moreover, the problems concern not only the retail market of DDR5 and desktop PCs, but also servers. Many corporate clients are laying off workers because of rising costs. It is clear that they do not consider investments in new server systems. Industry experts expect the situation to start to improve in the second half of the year. By then, DDR5 RAM should be about a quarter of the market. But significant progress before 2024 is hardly expected.
Perhaps the growth of the market will be associated with new models related to AI. Microsoft even had to cut access to hardware resources for its employees. The company has chosen a new strategy for the development of AI, but Microsoft’s hardware resources for development are simply not enough.
