Global RAM shortage is causing a massive price hike, with prices tripling in just a year's time. PC and smartphone memory chips are severely scarce, and the demand for memory chips in artificial intelligence (AI) data centres is the culprit.
The Global RAM Shortage
Reports from multiple sources indicate that PC and smartphone memory chips, particularly dynamic random access memory (DRAM), are experiencing a severe shortage. This has led to a massive price hike, with some reports suggesting that prices have tripled in just a year's time.
Some computer stores are even stopping the practice of displaying fixed prices due to market volatility. For instance, Central Computers, headquartered in Santa Clara, California, highlighted that RAM and related components have witnessed a price hike by 20-50 percent in recent days.
Affecting Consumers Worldwide
The shortage is not limited to any specific region or country. Reports indicate that the situation is occurring across the globe, with some regions experiencing a delayed impact due to existing stocks.
- PCWorld reports that a set of two 64GB DDR5 DIMMs are currently priced at $900 on Best Buy, up from $155 just 18 months ago.
- The Verge reports that prices of 32GB memory chips for PC have tripled in just three months, going up from $130 to $440.
Impact on Allied Sectors
The shortage is not only affecting the tech industry but also has a ripple effect on allied sectors. For instance:
- iQOO CEO Nipun Marya mentioned that Samsung increased prices of memory chips by 60 percent from September to November, which affected the pricing of their newly launched iQOO 15.
- Valve has not finalized the price of their recently unveiled Steam Machine due to the same price hike.
- Nvidia and AMD are reportedly planning to hike the prices of their GPUs by 10 percent due to the shortage.
- Rumours also suggest that Microsoft may be forced to increase the prices of Xbox again to mitigate component costs.
The AI-Related Reason Behind the Shortage
The recent push by major corporations to build new data centres for handling the increasing demand for compute power in their chatbot and productivity tools has created a shortage of memory chips.
According to Epic CEO Tim Sweeney, "RAM price increases will be a real problem for high-end gaming for several years. Factories are diverting leading edge DRAM capacity to meet AI needs where data centers are bidding far higher than consumer device makers."
A Future of Uncertainty
The shortage and price hikes may persist for some time, making it difficult to predict when prices will correct themselves. Whether the situation is temporary or a result of natural resources scarcity remains to be seen.
As such, consumers should prepare themselves for inflated prices of smartphones, laptops, PCs, and gaming consoles in the coming months.
In conclusion, the global RAM shortage has severe implications on various sectors, with no clear end in sight. It is essential for industry stakeholders and consumers to be aware of this situation and plan accordingly.