One of the most fundamental ways to determine the price of a product is the balance of supply and demand. It is normal that the prices of products that are abundant on the market are low, while the prices of products that are difficult to find are constantly increasing.
However, in some cases, sudden disruptions in the balance in the supply-demand chain can lead to unexpected problems. One of the most discussed topics in the world's largest technology forums concerns exactly such a process.
Prices for RAM, which finds its place in almost everything from cell phones to televisions, from computers to products with different technologies, rose by almost 500 percent in a short period of time. This situation will not only increase the prices of certain products, but may also radically change consumption habits.
Why are RAM prices rising?
RAM or memory is crucial to the operation of electronic devices. In order for a computer or smartphone to run software, the codes must be temporarily held in this memory. Demand is exploding, particularly for high-bandwidth storage used in artificial intelligence applications.
“Why have prices gone up?” Artificial intelligence is cited as the main reason in all answers to the question. This new technology, which has quickly entered our lives, actually causes significant energy consumption. In addition, the concept known as “Big Data” is also undergoing serious processes. And all of these innovations require extremely fast computing power.
This is where the demand for high capacity storage from Amazon, Google, Apple and similar tech giants arises. At this point, demand today exceeds current production capacity. This disrupts the balance between supply and demand just mentioned and drives up storage prices.
Any product that uses RAM may experience a price increase
It is stated that the production cost of a laptop with 16GB of RAM could increase by $40 to $50 this year. For smartphones, production costs are expected to increase by about $30.
The number of RAM manufacturers in the world is certainly and quite limited. One of their first steps in the face of increasing demand is to continue with global giants that “can do a lot more shopping.”
It is a fact that is on everyone's lips in the industry that prices have increased by almost 500 percent until three months ago. However, the scenario where you have money to spend but still can't buy RAM is increasingly becoming a reality. It is said that the world's largest RAM manufacturer has returned to the customers it has served for many years with the answer: “We don't have any RAM to give you this year.”
Under normal conditions, the share of RAM in the total cost of a computer is about 15-20 percent. However, according to industry representatives, this rate has recently increased to 30 to 40 percent. When we add all of this together, the inevitable end becomes clear. Any product that uses RAM is sure to increase in price in some way.
User habits may change
The need for RAM is much higher than usual. Production is limited. And these RAMs are crucial for the world giants. When we combine this information, we can see more clearly what a new era awaits us. This isn't a situation where we can just say, “There will be price increases because of RAM” and just ignore it.
At this point two options come to mind. Should you settle for much higher prices than usual or settle for lower performing devices? Apparently, a difficult choice awaits consumers both this year and in the years to come…
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