RAM Might Just Get Cheaper This Year

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The cost of RAM has been on the rise over the last year and a half. The reasons for this are many and varied, but consumers have a new occurrence on their side. A five percent drop in the price of high-end memory chips, combined with some analysts expecting a drop in sales growth, could mean prices decrease this year. A very interesting report by Reuters has shed some light on potential market changes.

One of the main factors in the market for high-end memory has been the rise of the smartphone. As a market, it is huge, and demands more and more memory for each passing generation of technology. Last year’s explosive profits for chip makers allowed them to dramatically boost output, which is bringing some stability to the market. Analysts also expect the increased money flowing to manufactures to allow them to cut manufacturing costs and remain profitable even while prices ease.

This is important for the chip makers, as large pressure has been building from the primary smartphone makers to reduce prices. It is safe to assume that this pressure has been considerable, as that portion of customers account for nearly one third of the high-end memory market on it’s own.

This is all good news for PC owners, as the knock on effect will hopefully be a freezing, and then restriction, of the inflated prices you will have been seeing for RAM over the last year. Will this happen soon? That is not likely, prices tend to drop at a slower pace than they increase, as companies try to squeeze profits. It does, however, mean that by year’s end you should be paying less for RAM than you are right now.

On an individual level, it means that unless you are replacing faulty RAM, it might be better to hold onto your cash till the end of the year. You may just get more bang for your buck.