DRAM Prices are back on the rise

As computer users everywhere began to think of DRAM as an minor expense, it appears those days may be soon coming to an end.  Current demand for DRAM has increased this quarter, and naturally the market has reacted by increasing the cost.  According to DRAMeXchange, we’ve seen an 8% increase in DRAM prices in the first two weeks of April alone.  Future forecast don’t appear to be pleasant either as many DRAM manufacturers have began focusing more on mobile products, thereby reducing the supply.

Cost

The market average for a 4GB DDR3 module is currently $25.50.  Still not something that’s going to break the bank, however if the prices continue to trend we could see that cost double in the future.  So far DDR3 DRAM has continued to increas in cost for the past 5 months.  The cause of the price increase has been contributed to the merger of Micron Technology and Elpida Memory.  PC OEMs made large purchases to restock early, in preparation of any potential shortages.

However, with rumors of faster DDR4 on the horizon I wouldn’t go into an all out panic.  Manufactures should be shifting their production to the higher frequency, lower power consumption DDR4 here shortly.  With that will come a ton of supply, and a slower demand as the PC industry will sluggishly adopt the new technology.  It’s estimated to take 5 years for 50% of the PC community to adopt DDR4, just as it took 5 years for 50% to adopt DDR3.

If you were looking at purchasing some new DDR3 in the near future, I suggest to go ahead and get it now while it’s not too expensive.  We may see much higher prices in just a few short weeks, but prices should balance out once PC OEMs have achieved their necessary stock and find comfort in the market.

 

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