The memory procurement market has adopted a new business model with hourly contracts, where quoted prices are valid for only a single hour, necessitating a new pricing quote with each change. Memory makers like SK hynix, Samsung, and Micron are introducing contract structures that force OEMs to make quick decisions to procure DRAM within a very short timeframe. This shift is driven by a rapid increase in demand that is causing product pricing to change literally by the hour, pushing memory makers to require much faster contract settlements and making it difficult for buyers to plan ahead.
Large PC OEMs, who are among the biggest customers, now have to ship PCs with one pricing, while their future products are subject to price changes that fluctuate by the hour. This introduces new risk into hardware roadmaps, as current shipments are based on secured pricing while upcoming builds could face significantly different cost structures within a matter of hours. How sustainable and stable this market will be remains to be seen, as the contracting model ties procurement decisions closely to short-term price swings and supply constraints linked to surging artificial intelligence demand.
The customer DRAM market is splitting into two camps as a result of these conditions. A short list of deep-pocketed customers, including large cloud providers, major automakers, and top smartphone firms such as Apple and Samsung Electronics, retain priority access to DRAM and the best pricing negotiation leverage. Memory manufacturers like SK hynix and Micron are said to prioritize these relationships by favoring buyers who can prepay or settle in cash, while for the vast remainder, more than 190,000 small and medium enterprises, the situation is harsher. Many of these smaller buyers lack the cash flow and bargaining leverage to accept rapid price jumps, and as costs climb, some firms are revising demand forecasts downward to avoid margin erosion, particularly outside the hyperscaler and data center sector where consumers are less keen on spending more on products that are becoming more expensive each day.
