Why is SDRAM so cheap now?

[rc5]

On pricewatch, you can find 512MB PC133 for $24, it was $500 this time last year. If they still can make a little profit by selling 512MB PC133 for $24, imagine how much profit they made last year!

 

[Lucky]

nm

 

[Atlantean]

It is probably so cheap because there are better types of ram out there now, and they are probably trying to get rid of all the leftover sdram they have. At least thats what I think...

 

[Pr0Hawk]

DDR is better and is pretty cheap.

 

[jehh]

<< On pricewatch, you can find 512MB PC133 for $24, it was $500 this time last year. If they still can make a little profit by selling 512MB PC133 for $24, imagine how much profit they made last year! >>



Well, first off they had to pay for their factory, development, equipment, etc. which has now all been paid off...

But the truth is, they are losing money at those RAM prices... It costs them about $2 a chip to make the 256MB stuff and almost $4 a chip to make the 512MB stuff, then add a buck or two for the making of the PCB, putting it all together, etc...

The reason RAM is so cheap is because there is far more on the market than anyone wants to buy...

Yes, even with all their expenses, they were making a ton of money at $500 a stick, that is why everyone and their brother got into the RAM business two years ago, and why there is so much production and over supply now...

Jason