Why are ram prices so high?

Kevster

Member
Apr 15, 2001
43
0
0
Did the western world collapse or something cuz ram prices have more than doubled in six months. the 256 crucial 133 i got for 35 in the fall is now 85. what is with this, could the war against terrorism be to blame?
 

RSI

Diamond Member
May 22, 2000
7,281
1
0


<< you mean why are ram prices normal? >>

Of course that's what he means, and in contrast to previous ram prices, they are very high.
 

Kevster

Member
Apr 15, 2001
43
0
0
Yeah, i know they have been high in the past but considering i bought a 256 meg chip in june for 40 and one in october for the same i am wondering why they are so much higher to double in a year
 

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136


<< Yeah, i know they have been high in the past but considering i bought a 256 meg chip in june for 40 and one in october for the same i am wondering why they are so much higher to double in a year >>



It's called supply and demand.

The market was saturated. Now it's not.

Viper GTS
 

XZeroII

Lifer
Jun 30, 2001
12,572
0
0
I think he is asking why RAM prices have gone up so much lately. I don't know.
 

Johnnie

Super Moderator<br>Elite Member
May 28, 2000
8,444
0
76
i remember last Nov..ordering 2-Crucial 256M 2100 DDR for $65 and some change :) shipped :)
 

Kevster

Member
Apr 15, 2001
43
0
0
I understand simple microeconomics but for something to double in price is just odd, don't take this like I am asking the meaning of life it was just a simple question.
 

Kevster

Member
Apr 15, 2001
43
0
0
Maybe, i know thats what happened a few years ago when they had a major earthquake and 128 megs of ram for my ibook shot up to 480, they just had an earthquake last week too
 

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Last year, PC demand slackened and memory manufacturers had a glut of supply. As usual for this situation, the various manufacturers slashed prices in order to grab market share and put each other out-of-business. For a while late last year, memory was selling retail for less than half of what it costs to manufacture. In late Nov., Hynix became the first to throw up the white flag and they ceased memory production. Samsung and Micron agreed to cut production, the supply glut ended, and memory prices are now in line with the cost of production.
The only uncertainty right now is the fate of Hynix. If Micron buys them out, as they probably will, then Micron will become the largest mem producer in the world, with a firm control on supply, and prices will probably go up again. If Micron does not end up buying Hynix, which is possible because Hynix's many creditors are concerned about their already high losses, then the competition could begin anew.
It's extremely unlikely that we will see prices like last fall again, regardless of what happens.