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Prices for memory products at a major electronics market in Shenzhen are beginning to decline after months of sharp increases. Some items have fallen by as much as 30 percent, leading to lower prices for used phones as well. The shift was swift, with several vendors reporting that the prices for DDR4 and DDR5 memory sticks dropped by over 100 yuan (around $14.50), and in certain cases, even several hundred yuan, equal to tens of US dollars. For example, a 32GB server memory module that once cost more than 3,000 yuan (approximately $436) is now priced between 100 and 200 yuan less.
The previous surge in prices was mainly driven by panic buying and hoarding by middlemen. As production increases, supply shortages are expected to ease, prompting resellers to clear inventory and push prices downward further. Vendors noted that DDR5 memory modules, which had experienced particularly steep price hikes, are now falling just as rapidly. A new 16GB DDR5 stick that previously sold for between 1,600 and 1,800 yuan (roughly $232 to $261) is now available for about 1,200 yuan.
This price volatility is also affecting the second-hand phone market. A buyer who recycles old phones for parts told that the value of an old device is now just over 200 yuan (around $29), compared to more than 300 yuan two weeks ago.
Despite the recent declines, some industry experts believe the downward trend still has room to go. One said that 2026 has already been challenging for buyers because of shortages, and the worst may still be ahead next year. Expectations of a price stabilization later this year are seen as unrealistic. Consumers generally tolerate gradual, moderate price increases better than sudden spikes, which tend to slow down once prices reach a point where buyers are unwilling to pay more.
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