Perhaps the price of RAM has been at its lowest level in many years. If you upgrade a new PC in 2018, you will really feel regretful. By now, the price of RAM has dropped by half. So what happened?
From the middle of 2016 RAM prices skyrocketed
Like many other industries, the selling price of products may be affected by the balance of supply and demand. Between 2017 and 2018, we witnessed a pre-coding fever and followed with a sharp increase in VGA prices. It is also due to the high demand for using VGA as a buffalo for digging, even gamers do not have a new VGA to upgrade.
The same thing happened with RAM, from mid-2016 to early 2019. The reason is due to the explosion of cloud computing and data centers, which increases the demand for memory chips.
Corsair's director of public relations, Justin Ocbina, also blamed the rapid growth of mobile devices in recent years. According to the latest PewResearch data, there are more than 5 billion mobile devices worldwide, of which more than half are smartphones. Although there are many devices sold a few years ago, they still affect the memory chip market.
CEO of Chillblast, a developer, Ben Miles explained that there are many semiconductor factories that have followed the smartphone craze. Turn DRAM production lines into memory chip production lines for smartphones. As the demand for DRAM outstrips supply, producers have to stockpile and push the selling price up.
All of these causes RAM prices to skyrocket in the period 2016-2018. Early in 2018, the prices of DDR3 and DDR4 RAM were even doubled over the same period last year. This is also the time when RAM prices reached the highest peak of all time and started to adjust.
Demand declined when RAM prices peaked
Every market has a correction. When RAM prices peaked, not just general users, but big data storage companies are also reluctant to upgrade and expand RAM. Corsair also noticed a drop in RAM sales as prices increased, drastically lower for dedicated modules for large data centers.
Corsair had to find many ways to cut production costs while maintaining quality. Now that the price of RAM has dropped, Corsair says sales are also starting to rise. The market began to adjust to return to the balance of balance.
This may be the last round of discounts
Market analyst Trendforce said that RAM prices will continue to decline during Q3 / 2019. However, this may be the last round of discounts.
Mr. Miles said that the sharp decline in RAM price is not a good sign. Because if RAM memory declines, manufacturers will shift their focus to another direction. While the demand for memory has not diminished, it has also increased, as data centers are increasingly expanding, online services are growing.
RAM prices may rise again in Q4 / 2019. And once the momentum rises again, it will be difficult for the price of RAM to drop to the lowest level as it is now. It may take more than 3-4 years.
We are also about to see a completely new generation of DDR5, promising to contribute to the higher DDR4 and DDR3 prices. The price of new DDR5 RAM memory will certainly not be cheap, not to mention that you will have to upgrade the new mainboard and the new processor chip to support.
So this is likely to be the final discount for DDR4 and DDR3 memory. With VGA prices back to normal, this is a good time for you to upgrade your PC.