Micron: DDR4 will remain more expensive than DDR3 this year

Later this year Intel Corp. plans to introduce its new code-named “Skylake” microprocessors that will target mass market segments and will support DDR4 memory. As a result, the latter will gain market share. Nonetheless, DDR4 will remain more expensive than DDR3 in the coming quarters, according to Micron Technology.

At present DDR4 memory is utilized by servers powered by the latest Intel Xeon “Haswell-EP” microprocessors as well as high-end desktop PCs featuring Intel Core i7-5800/5900-series “Haswell-E” central processing units. While shipments of Xeon chips are on the rise, the overall share of DDR4 on the market remains low. The situation will change when Intel rolls-out its new “Skylake” chips that will support both DDR3 and DDR4 types of memory.

“DDR4 ASPs remain at a significant premium to DDR3 given the enhanced performance,” said Mark Adams, the president of Micron, during a conference call with investors and financial analysts. “As the market for DDR4 begins to take shape over the next 12 months and beyond the rate of growth should positively impact our average ASP.”

Unfortunately, Micron has made no predictions regarding adoption of DDR4 by the market; it is unknown how many desktop and laptop PCs will use the new type of memory.

Thanks to increasing sales of servers based on the latest Intel Xeon chips, shipments of DDR4 by Micron in the Q4 2014 increased four times quarter-over-quarter.

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KitGuru Says: While it is clear that DDR4 will continue to be more expensive than DDR3, what remains to be seen is the significance of the price premium. If the new memory costs around 10 per cent more than DDR3, this will hardly slowdown its adoption by the market, but if the price difference is 25 per cent and higher, this will clearly lower popularity of DDR4 rather significantly.

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