GPU prices are finally reaching a more reasonable level after years of being sky-high, but the cost of RAM has skyrocketed to unprecedented heights. The shortage of RAM and flash memory chips is the primary cause of this surge in prices.
A comparison between the same components three months ago and the current prices reveals dramatic increases. For example, a 16GB kit of DDR5 RAM from Micron was priced at $82 just three months ago but has now jumped to $310. Similarly, a Western Digital SSD with 2TB of storage went from $115 to $154 in that same period.
While GPU prices have been unaffordable for many gamers and content creators, the situation is quite different when it comes to RAM. This shortage is having a significant impact on PC builders, who will now face even higher costs for essential components.
The reasons behind this shortage are complex, but the ongoing AI boom has played a major role in driving up demand for memory chips. Manufacturers need time to ramp up production and increase capacity before they can meet current high levels of demand. This means that prices may continue to rise until the supply chain can be restored to its normal state.
The effects on PC builders are already being felt, with many companies struggling to keep their inventory of components in stock. This is particularly true for smaller businesses like Framework, which has had to stop selling standalone RAM kits due to price increases from suppliers and the efforts of scalpers trying to capitalize on the shortages.
On the other hand, larger companies such as Lenovo and Apple seem well-positioned to ride out this shortage with healthy profit margins that will allow them to absorb the increased costs without passing them on to customers. However, even these companies are not immune to the effects of the shortage, and they may eventually have to raise their prices to reflect the current market conditions.
The situation highlights the challenges of predicting when shortages-fueled price hikes might end. With demand for AI-driven applications expected to continue growing in the coming years, it's possible that we will see a sustained period of high RAM prices before production capacity can be increased to meet normal levels.
A comparison between the same components three months ago and the current prices reveals dramatic increases. For example, a 16GB kit of DDR5 RAM from Micron was priced at $82 just three months ago but has now jumped to $310. Similarly, a Western Digital SSD with 2TB of storage went from $115 to $154 in that same period.
While GPU prices have been unaffordable for many gamers and content creators, the situation is quite different when it comes to RAM. This shortage is having a significant impact on PC builders, who will now face even higher costs for essential components.
The reasons behind this shortage are complex, but the ongoing AI boom has played a major role in driving up demand for memory chips. Manufacturers need time to ramp up production and increase capacity before they can meet current high levels of demand. This means that prices may continue to rise until the supply chain can be restored to its normal state.
The effects on PC builders are already being felt, with many companies struggling to keep their inventory of components in stock. This is particularly true for smaller businesses like Framework, which has had to stop selling standalone RAM kits due to price increases from suppliers and the efforts of scalpers trying to capitalize on the shortages.
On the other hand, larger companies such as Lenovo and Apple seem well-positioned to ride out this shortage with healthy profit margins that will allow them to absorb the increased costs without passing them on to customers. However, even these companies are not immune to the effects of the shortage, and they may eventually have to raise their prices to reflect the current market conditions.
The situation highlights the challenges of predicting when shortages-fueled price hikes might end. With demand for AI-driven applications expected to continue growing in the coming years, it's possible that we will see a sustained period of high RAM prices before production capacity can be increased to meet normal levels.