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Why is RAM more expensive now?

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April 13, 2013 10:30:56 AM

Last year when I built my PC, ripjaws were like only $40. Now they're $65+. And that's ALL brands! I don't see too much news about this. Does nobody care or something? It was already annoying when hard drive prices went up.

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a b } Memory
April 13, 2013 10:40:45 AM

It is due to a increase in the graphic cards prices -- RAM go up around 10~15%.
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a b } Memory
April 13, 2013 10:45:36 AM

jemm said:
It is due to a increase in the graphic cards prices -- RAM go up around 10~15%.

No. Graphics card prices are increasing because they use RAM, and RAM costs more now than it used to. This only affects the graphics cards that use DDR3 though.

The cost of RAM is increasing because production has been scaled back in response to poor profits and poor sales. A RAM manufacturer went bankrupt a year ago.
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April 13, 2013 10:47:56 AM

jemm said:
It is due to a increase in the graphic cards prices -- RAM go up around 10~15%.


lol WHAT? that's some solid reasoning you got bro.

economics 101, the supply demand curve. end of last year, supply was high, so demand and cost was low. they must have shorter supply now so the price is going up. my 16gb of ram is twice the price now.
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a b } Memory
April 13, 2013 10:48:11 AM

A year ago the economy sucked, no one was spending money, and the market was flooded with goods nobody wanted to buy. Now, the economy is improving fast, people are spending money again, and prices are going up. Its all about demand and supply.
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a b } Memory
April 13, 2013 11:17:04 AM

eklipz330 said:
jemm said:
It is due to a increase in the graphic cards prices -- RAM go up around 10~15%.


lol WHAT? that's some solid reasoning you got bro.

economics 101, the supply demand curve. end of last year, supply was high, so demand and cost was low. they must have shorter supply now so the price is going up. my 16gb of ram is twice the price now.


It is not any reasoning from my side -- I read it somewhere -- perhaps the info is not accurate, but I haven´t made it up.

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April 13, 2013 11:19:44 AM

jitpublisher said:
A year ago the economy sucked, no one was spending money, and the market was flooded with goods nobody wanted to buy. Now, the economy is improving fast, people are spending money again, and prices are going up. Its all about demand and supply.


I see that it is about economy state. When economy is ok, demand > than supply. When it sucks, it is opposite. Why do you say that it is caused by demand and supply? Blaming demand and supply is like saying than it is my leg kicked you, not me. Stop reading the marketing preachers.

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a b } Memory
April 13, 2013 11:39:49 AM

Maybe you should take a course in basic economics so you can understand. It doesn't take take a "marketing preacher" (whatever that is) to figure it out.
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April 13, 2013 11:42:35 AM

To figure out what? Lol, you are leaving under such strong dogmas so that the only way to think for you is reading more dogmas.
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a b } Memory
April 13, 2013 12:54:10 PM

Valentin Tihomirov said:
jitpublisher said:
A year ago the economy sucked, no one was spending money, and the market was flooded with goods nobody wanted to buy. Now, the economy is improving fast, people are spending money again, and prices are going up. Its all about demand and supply.


I see that it is about economy state. When economy is ok, demand > than supply. When it sucks, it is opposite. Why do you say that it is caused by demand and supply? Blaming demand and supply is like saying than it is my leg kicked you, not me. Stop reading the marketing preachers.


So you're saying the price isn't subject to the laws of supply and demand? :heink: 
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a b } Memory
April 13, 2013 12:58:23 PM

anybody read that link above?
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April 14, 2013 12:06:08 AM

Sakkura said:
Valentin Tihomirov said:
jitpublisher said:
A year ago the economy sucked, no one was spending money, and the market was flooded with goods nobody wanted to buy. Now, the economy is improving fast, people are spending money again, and prices are going up. Its all about demand and supply.


I see that it is about economy state. When economy is ok, demand > than supply. When it sucks, it is opposite. Why do you say that it is caused by demand and supply? Blaming demand and supply is like saying than it is my leg kicked you, not me. Stop reading the marketing preachers.


So you're saying the price isn't subject to the laws of supply and demand? :heink: 


Ok, when somebody hits you with a leg, we must blame leg, not the person. What is done to you brain that you promote and do not understand this idea?
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November 30, 2013 6:24:01 PM

Well I too had this question as I bought some some Corsair Vengeance RAM for my MBPro last year, around the same time from Amazon and it was £78.50 (roughly $128.50); however, I went online today to buy another 16gb pack for my Mac Mini as running a couple of VMs on 4GB is next to impossible. It's now, from the same seller, listed at £148.50 (roughly $244); confused, I looked further into it. The chap claiming it's a GPU thing is very much not understanding the chain of supply but the price of ram (+10% wholesale) is affecting the end-user price of GPU's, yes. That's due to two things surprisingly. 1) Companies such as Apple, Microsoft, Sony & even Samsung are buying so much of the stuff up in bulk pre-order style is making the world demand for the rest of us a smaller pot (up 30% according to Bloomberg) & 2) there was a pretty epic fire at SK Hynix's factory in South Korea (a name all of us will recognise). They're responsible for more than 30% of all RAM world wide, and overnight it's claimed the price of DDR3 went up by just over 10%. Since the fire, there's now a shortage on last year's output of 23%. This has made DDR3 jump higher in price by nearly 100%; and it's due to "last into 2014". Yes, DDR4 may ease this but it's not going to help if your system isn't going to be adaptable to DDR4 as it's not something I'm totally in on at the minute but I'm pretty sure it's not back-compatible.

Sources:
Bloomberg - http://www.bloomberg.com/news/2013-09-06/chip-prices-su...
TrendForce - http://press.trendforce.com/press/20130905-858.html
KitGuru - http://www.kitguru.net/components/memory/faith/far-east...
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a c 2001 } Memory
November 30, 2013 7:55:26 PM

The fire a few monthsago that destroyed the big Hynix manufacturing plant (big supplier of mem ICs) is the biggest reason prices have shot up, supply was cut drastically, and the DRAM makers are in the process of cutting back production and gearing up for DDR4 production...the article cited above has little to do with the price rises recently
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November 30, 2013 11:12:08 PM

So if I understand what has been said correctly, in recent years there has been a surplus of RAM, so the costs went down as an incentive to buy. Since then the economy has improved, so the same stuff is going out at higher prices, simply because it's assumed that we all have more money to give away? Not to be too cynical, but basically that implies that as long as we, the end users maintain a a frugal lifestyle, retailers feel justified taking any financial advantage that we may obtain through our own endeavors?

My understanding of supply vs demand is reasonably limited but I can understand that if there is a high demand for something and a low supply, then high costs are a natural occurrence. For example a hand made or vintage sports car is expensive because there are limited numbers available. I do not see how that carries over to RAM though, especially if the reasoning behind the lower prices in the last few years were due to a surplus that they couldn't sell... If that is the case then there must be some remnants of that surplus still in retail circulation today, being sold at a much higher price... This is in contrast to CPUs, which seem to be cheaper now than in previous years. It's not related, directly, to the OP but I'm also curious as to why a 2600K is still considerably more expensive than a 3770K... And just look at the price of a samsung 1tB SSD now... Most computer hardware seems to have gone down in price but RAM still costs more. I understand that Hynx has had a major set back but there seems to have been a big push towards the so called "performance RAM" and the rest has been left behind. I live in Perth, Australia which is pretty dismal for off the shelf computer hardware but I can buy a performance GPU pretty cheap, cheaper than ever before - but I literally cannot find a store that stocks any of the cheap ranges of RAM - corsair value select, Kingston ect. Even A dual set of Patriots is only marginally cheaper than a kit of Corsair Vengeance... The "Supply vs Demand" logics seems to merely be that PC hardware is cheap and you can't biuld a PC without RAM, so here's what you're gonna have to pay... I find it hard to believe that there is a global drought of RAM.

Just found this, worth a read http://www.extremetech.com/computing/166775-ram-pricewa...
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a b } Memory
December 1, 2013 6:21:13 AM

Szyrs said:
So if I understand what has been said correctly, in recent years there has been a surplus of RAM, so the costs went down as an incentive to buy. Since then the economy has improved, so the same stuff is going out at higher prices, simply because it's assumed that we all have more money to give away? Not to be too cynical, but basically that implies that as long as we, the end users maintain a a frugal lifestyle, retailers feel justified taking any financial advantage that we may obtain through our own endeavors?


Its not because we have more money to spend, it is because we ARE spending more. There is also a significant shift occurring right now in the PC market place that is bringing the demand for memory back again, but not so much many other traditional PC parts. The desk top PC is on the edge of extinction as you know it now for the average consumer.
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December 5, 2013 3:34:46 AM

Could you elaborate on that a little? I understand the shift towards tablets and laptops, so there is an increase in demand for so-dimm RAM, but that doesn't explain why other PC parts are now cheaper/same price. Motherboards, hard disks, SSDs, CPUs are all going down in price and up in performance - so why is the same DDR3 1600mhz RAM kit twice the price that it was 2yrs ago? If it's a case of supply vs demand and the demand is slipping, then surely the price should drop accordingly. What's been said on this thread is that the supply has dwindled, which is true to an extent but there are manufacturers who are simply upping prices because they can. There are currently only three manufacturers of Hard Disks in the world, yet if the prices aren't soaring, despite the demand for HDD's never really going down.

When you say that there is a shift occurring in the PC marketplace right now that is bringing back the demand for memory, what do you refer to? I'm curious to know...
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a b } Memory
December 5, 2013 8:14:30 AM

Reduced economies of scale, and a greater dip in supply than demand due to that Hynix factory fire along with regular reductions in production capacity (meant to improve profit margins, which for a long time have been terrible on DDR3).
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February 11, 2014 4:32:28 AM

Price is high because of a fire at Sk hynix production plant Hynix supplies

SK Hynix, the world’s second-largest producer of memory chips with customers including Apple Inc. (AAPL), Dell Inc. (DELL) and Sony Corp.
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a b } Memory
February 12, 2014 5:41:53 AM

Szyrs said:
So if I understand what has been said correctly, in recent years there has been a surplus of RAM, so the costs went down as an incentive to buy. Since then the economy has improved, so the same stuff is going out at higher prices, simply because it's assumed that we all have more money to give away? Not to be too cynical, but basically that implies that as long as we, the end users maintain a a frugal lifestyle, retailers feel justified taking any financial advantage that we may obtain through our own endeavors?

My understanding of supply vs demand is reasonably limited but I can understand that if there is a high demand for something and a low supply, then high costs are a natural occurrence. For example a hand made or vintage sports car is expensive because there are limited numbers available. I do not see how that carries over to RAM though, especially if the reasoning behind the lower prices in the last few years were due to a surplus that they couldn't sell... If that is the case then there must be some remnants of that surplus still in retail circulation today, being sold at a much higher price... This is in contrast to CPUs, which seem to be cheaper now than in previous years. It's not related, directly, to the OP but I'm also curious as to why a 2600K is still considerably more expensive than a 3770K... And just look at the price of a samsung 1tB SSD now... Most computer hardware seems to have gone down in price but RAM still costs more. I understand that Hynx has had a major set back but there seems to have been a big push towards the so called "performance RAM" and the rest has been left behind. I live in Perth, Australia which is pretty dismal for off the shelf computer hardware but I can buy a performance GPU pretty cheap, cheaper than ever before - but I literally cannot find a store that stocks any of the cheap ranges of RAM - corsair value select, Kingston ect. Even A dual set of Patriots is only marginally cheaper than a kit of Corsair Vengeance... The "Supply vs Demand" logics seems to merely be that PC hardware is cheap and you can't biuld a PC without RAM, so here's what you're gonna have to pay... I find it hard to believe that there is a global drought of RAM.

Just found this, worth a read http://www.extremetech.com/computing/166775-ram-pricewa...


I don't like analogies because realistically they mean nothing, like the sports car thing. The car may be expensive, yes, but because there are so few made doesn't mean that is the reason it is expensive. This is not a supply and demand situation. The market for a select rare sports is limited, its a niche market, there are not that many people looking to buy one. The car is expensive more so because of the parts used to build the car, and the craftsmanship required to assemble it, insurance, import duties and taxes, perhaps emissions requirements, insurance, these are the main driving factors of cost, but there are many more underlying reasons as well. Memory is made and sold worldwide to, what?, hundreds of distributors, and thousands of end users, corporations and literally millions of individuals. Costs to manufacture and distribute are for the most part constant, and profit per piece is quite low. Any disruption to the supply the chain, or sudden market demand can be a big driving force for price variables.
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March 15, 2014 4:15:28 AM

Might I suggest that you're also not a fan of dictionaries, proper grammer or the grasp of simple concepts? Why have you commented on a post that is months old without any intention of providing any further insight or raising any queries of your own?

In the most convoluted way possible, you have explained that market supply has an inverse correlation to market price, provided that demand remains constant. I don't think that anybody who commented in this thread months ago had any difficulty understanding that.

As many people pointed out, one of the major suppliers of RAM suffered a damaging blow last year which then impacted the entire global market. It did not have the same level of impact that the loss of many HDD factories in Thailand had on the HDD market several years ago though, and by the time this thread was created the gap in the production market had been filled. That point was clearly illustrated in the article that I posted in this thread, months ago. The question then remained, why was the price of RAM still so high?

Your understanding of the high end sports car market is at least entertaining.

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July 31, 2014 11:01:15 AM

Its because of the big companies buying up all the RAM. Those PS4s and Xbox 1s all have 8 gigs of ddr3 ram.
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July 31, 2014 11:03:16 AM

Also remember steam boxes also need ddr3 ram.
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a b } Memory
August 1, 2014 5:07:11 AM

bgi123 said:
Its because of the big companies buying up all the RAM. Those PS4s and Xbox 1s all have 8 gigs of ddr3 ram.


No they don't. The PS4 does not use DDR3, it uses GDDR5.
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a c 2001 } Memory
5 minutes ago

Lot's of points, but basically when it comes to DRAM (DDR3), there was a shortage (flood and fire), prices went up, and now demand is high for chips for mobile devices and other, along with production of DDR3 is down as the manufacturers gear up for DDR4 production, so don't expect prices to drop, as with DDR and DDR2 production will continue in limited runs and will will keep prices to the high side....as DDR4 becomes more mainstream expect DDR3 prices to rise even a little more
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