(Yicai) April 1 -- Prices for memory products at Shenzhen’s Huaqiangbei market, one of the world’s largest electronics markets, have started to come down after months of steep gains. Some items have dropped by as much as 30 percent, a shift that has also pulled down the price of used phones, Yicai learned after visiting the market yesterday.

The drop happened fast, a number of vendors told Yicai. Within just a few days, the prices for DDR4 and DDR5 memory sticks tumbled by more than CNY100 (USD14.50), and in some cases even several hundred yuan, equivalent to tens of US dollars. A 32GB server memory module, which at one point cost more than CNY3,000 (USD436), is now between CNY100 and CNY200 cheaper.

The previous price surge was largely driven by panic buying and stockpiling by middlemen, said Zhao Haijun, co-chief executive officer of Semiconductor Manufacturing International Corporation. As production ramps up, supply shortages should ease, forcing resellers to offload inventory and push prices down further.

The prices of DDR5 memory modules, which had seen especially sharp increases, are now falling just as quickly, a number of vendors said. "The price of a new 16GB DDR5 memory stick that once sold for between CNY1,600 (USD232) and CNY1,800 is now going for around CNY1,200.” Brand new DDR5 memory sticks are seeing a drop in price of up to 30 percent, which is greater than that for second-hand ones.

The volatility is also hitting the used phone market. At the Huaqiangbei market, one buyer who recycles old phones for parts told Yicai that the price of an old phone is now just over CNY200 (USD29), while two weeks ago it was more than CNY300.

However some believe the pressure is not yet over. "2026 has already been a tough year for buyers due to shortages, but the worst is still to come next year,” said Gou Jiazhang, general manager of Silicon Motion Technology. “Expectations of a price turning point later this year are unrealistic."

Consumers can usually tolerate gradual, intermittent price hikes, but not sudden spikes, he added. Once prices climb beyond what buyers are willing to pay, the upward trend will naturally slow down.

Editors: Tang Shihua, Kim Taylor