PC Peripherals Why are the RAM prices skyrocketing?

M

montylee

Skilled
As i have seen during several past years that the prices of almost all the PC components fall with time but the prices of RAM are never stable.
The prices of RAM keep on Fluctuating...

Take the current scenario: 1 GB DDR-2 RAM which was around 4K some time back is now around 6K.

Can anybody explain the logic behind this?
 
The first of this kind of price fluctuations occured when there was an Earthquake in Taiwan in 2000 or 2001 and it was genuine too. the prices for 256MB RAM changed from 1200 on one day to more than 8k in 4 days. But the recent fluctuations seems to be deliberately induced by the distributors and dealers by playing the limited stocks strategy.
 
A wild guess can be the very fact that the switch from DDR to DDR2 may not be very stable with huge fluctuations and demands and market trends accompanied by silicon shortages once in a while and the under advantage companies take on that account.

Just a guess...
 
Up until recently, most enthusiasts and other builders preferred AMD over Intel and so DDR2 wasnt adopted fully after its introduction. Supply > demand, prices remained low.

With the introduction of AMD setups that require DDR2 and more so the release of the C2D's, the demand for DDR2 skyrocketed. Add to this people that are currently upgrading / will upgrade for Vista. The majority will go with DDR2. Demand >>> Supply. Prices shoot up. This is more than just a random fluctuation in RAM prices. The prices arent going to go down anytime soon and at the most they will stabilize sometime next year according to what Ive read.
 
DDR1 is slowly falling out of the mainstream. Supply is probably lower or they may even have artificially raised prices.
 
simple economic rule of supply and demand... anyway, it's a little known fact that DRAM prices are "fixed" by the major manufacturers like Samsung...
 
But it's doesn't make sense...
Why is there a shortage of supplies when the demand has been high for 3-4 months now?
Take the example of Core 2 Duo. Initially everybody thought that Intel would dump the Pentium D's in India after the release of Core 2 Duo but Intel has aggressively advertised Conroe and the supply is quite good everywhere and that's why the lowest model is now available at less that 9K.

So, i guess it's merely a bad marketing move by the RAM companies...
 
lord_nemesis said:
Its just an artifically induced shortage to increase the prices in my opinion. RAM is an ideal candidate for doing that.
Click to expand...

:right: Totally agree with you.
 
If you think DDR1 prices are high you should check out RD Ram prices, was quoted Rs.2800 for 128mb, that tooo just around 3-6 months after 850 chipset was dumped by intel.
 
Why are the RAM prices skyrocketing?
Click to expand...

Just 1350/- for 512MB.

or is it ? here is a offer..... Looking for someone who can help me to buy TWO of these.

uramob4.jpg
 
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