Why is RAM so expensive? Find Out Here!

For those who aren’t technically minded, terms like RAM can be quite daunting. However, RAM is something that we all use on a daily basis, whether you are aware of it or not. Everything from laptops to smartphones and tables make use of RAM. So, let’s assume that you know nothing about technology here.

To put it simply, RAM is a type of memory that is superfast. Rather than your hard drive which permanently stores the information on your laptop or smartphone, RAM stores things temporarily for quick access. All of the things that might be needed fast are stored here.

Figuring out how much RAM you need is all dependent on what you are going to be using your devices for, but that’s something for another post. One question that pops up very frequently is why is RAM so expensive? Gone are the days where it was easily affordable. However, there are a number of reasons why this is the case.

RAM Price Fixing

Although many of us would like to believe that RAM price fixing isn’t a thing, unfortunately, it is. The big three RAM providers Micron, SK Hynix and Samsung have essentially agreed to keep prices high to maximise their profit margins high so that there is no competition between them. Of course, there is no written agreement per say because this would be classed as collusion.

It’s more a matter of the brands keeping an eye on each other’s prices to make it work. This works well for all three brands in the long run. Unfortunately, if you are going to be building a PC from scratch or upgrading your current custom build and you require a new RAM then this is something to keep in mind.

Higher Demand for Materials

Something that a lot of people have been talking about in very recent years is that the demand for materials required to produce chips and other components has drastically increased. This is because we now all run our lives through smartphones and laptops. Unfortunately, this higher demand for materials has led to somewhat of a shortage in some cases. Because of this, brands have been forced to source their materials from other places, thus requiring them to hike up their prices.

Supply and Demand

Large tech brands are well aware of the fact that none of us will be able to manage without significant RAM. This is especially true for those who custom build PCs. You can put all of the components that you have together and virtually complete a custom build, but without RAM you are simply not going to be able to use it. Manufacturers are well aware of this, and they know that demand is high right now. So, in order to maximise their profitability they will hike up the prices because they know that people will have no other alternative but to pay what they are asking.

More People are Downloading RAM

Another thing that has happened in recent years is more and more people are downloading RAM as opposed to buying it in its usual form. The problem with this is that major tech companies are losing out on millions of pounds every year because of people downloading RAM. This has led to them whacking their prices up to make sure that they can keep up with the competition and maintain profit levels.

As you can see, there are actually a number of reasons why RAM is so expensive these days, rather than just one cause. Of course, there are things that you can do in order to keep prices down. For example, there are forums where people are selling RAM at far lower prices than the average. If you are planning on building a custom PC then it is definitely worth checking these out before paying an absolute fortune.

 

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