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Discussion: Why is DDR memory so expensive (and increasing every day) ??

J

jiffylube1024

Diamond Member
Just like the topic says, I'm curious as to why DDR memory is increasing in price steadily, when it's the clear sucessor to SDR memory and the mainstream memory of choice for new systems. Fluctuations and volitility in prices have always been in the nature of memory prices, but it's illogical as to why DDR memory has almost tripled in price over the last few months. With SDR memory slowly being phased out, and Rambus memory truly struggling, DDR memory is actually going up in price, giving the ailing (and failing) Rambus memory an inside lane to take over. And why is Rambus memory so cheap? I'd like to hear some opinions, this has me stumped!
 
I believe we Capitalist Dogs would attribute the price fluctuations to supply and demand. Maybe there is a more industry related reason as well, but, DDR is flying out the door and Rambus is not.
 
Ahhh....I remember the days when 2MB SIMMS were $105. Even though it has increased steadily over the past 6 months, $85 for 256 MB of RAM is still pretty cheap.
 
Simple answer as to who is mainly at fault for high DDR prices: Intel. Why? For the first few months of the Pentium 4's life, the only option was RDRAM. Then Intel allowed for SDR SDRAM to work with the P4 via their i845 chipset. P4 sales rose b/c people were kept away due to high RDRAM prices. Now the P4 has three chipsets that allow it to opperate with DDR SDRAM. Intel has dominated the market for quite some time, so now that it's flagship CPUs, the P4s, can work with DDR SDRAM, prices for P4 systems fell because DDR was cheap and very abundant at the time (DDR was also a much faster solution than SDR). RDRAM had never really caught on even though it still does offer superior performance for the P4. So DDR is now all the rage and P4 systems are engulfing the supply of DDR. Low supply + high demand = high prices, all primarily because Intel allowed the P4 to stray from RDRAM. Good thing for Intel customers, bad for those who go AMD.

It'll be some time before the market has some time to recover and meet the demand of DDR. Prices should begin to fall, but maybe not. DDR333, 400, and 533 are supposedly on the way, which doesn't encourage the production of DDR266. Who knows, prices for DDR may not see a significant drop for quite some time. It wasn't too long ago that one was able to snatch up a lot DDR ram when it was about $36 per stick of 256MB (even for Crucial).
 
It's a dangerous thing, what the memory companies are doing with inflating the price of DDR memory. What with Tom's Hardware Guide raving about how Rambus is the only way to go with new P4 CPU's, rambus this and rambus that, P4's aren't exploited with DDR and blah blah, he might just help sway the whole market over to Rambus in the process.

On a side note, how come at THG's review of the "new" P4's (he probably just oc/ed some current P4's and RIMMS), he doesn't include the P4 3.0 with DDR to compare. Also, wouldn't dual-channel DDR whip the pants of the current dual-channel Rambus memory?

Anyways, my point is that by exploiting the current demand for DDR, they may make the Rambus platforms look so attractive that they shoot themselves in the feet and limit DDR's future (although the same companies are making both kinds of memory so I guess, what do they care? They're making more money while making us jump from one foot to the next).
 
No, but I'm just saying that a lot of people read THG and he's so set in "well this is no good, only this is good". I think a lot of other review sites respect THG and they might start to run similar (Rambus is the only way to go for the future) articles.

Edit: I'm also pissed because 256 MB DDR now will cost close to $200 canadian after taxes!
 
I remember last Fall that people were saying buy your ram now because prices are going to double in a couple of weeks and sure enough they were right. What happened was one of the larger ram producers (Micron I believe) won a lawsuit which allowed them to force many of the other ram producers to stop producing or pay them royalties. I can't remember exactly where I read that or who the exact players in the lawsuit were but that's what I believe was the reason for the spike in ram prices at the end of last year. Now, because of supply and demand, DDR is becoming increasingly popular and thus it would seem normal that it's cost would continue to increase over it's already elevated price.
 
I read in the New York times prices for memory going up, I did not believe it, but look like Micron bought a big memory company in Korea and is keeping the Ram.
 
Man...I'm so glad I snatched up that BestBuy Crucial Deal in Dec.!

I got 2 sticks of 256 Crucial DDR for $25 a piece after $10 rebate.
Started going up about 2 days after I got it!

I had doubts about getting it at the time (didn't need it).
But I'm glad I did.
 
hynix, the 3rd largest world supplier of ram gone bankrupt, up there in korea. ram was selling so low that hynix couldnt afford to make any more to continure losing money so it scaled back and declare the bankruptcy. micron is in the process of buying their remains and if/when they do, micron will be the #1 supplier ahead of samsung and micron will have tighter controls of ram supply so

oh and last year hynix was suing micron and samsung for dumping ram below cost to drive them out of business; turns out they were right, and thats why ram prices were so low for a few months last year.

same with dsl, the RBOCs such as pacbell drop prices to $39.95 which is way too low for CLECs causing northpoint, covad, rythms to declare bankruptcy. shortly after, pacbell raises prices bakc up to $49.95. its how a crooked monopilist market works, enjoy your defunct capitalism!
 


<< oh and last year hynix was suing micron and samsung for dumping ram below cost to drive them out of business; turns out they were right, and thats why ram prices were so low for a few months last year. >>


Chrimeny, what's worse; Micron and Samsung killing Hyenix like that, or Rambus' little JEDEC violation/patent abuse fiasco?
 
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