The phones are taking all the DRAM memory

Subject: General Tech | November 15, 2017 - 11:59 AM |

Once again we have bad news about RAM prices for consumers and great news for manufacturers.  The price rose an average of 5% this past quarter, continuing the upwards trend we have been seeing for quite some time now.  The supply shortage is due to several factors but the dominant one would be the smartphone industry which has vastly increased overall demand for DRAM.  Currently demand far outstrips supply, though as new fabs come online and current ones complete their upgrades to new process technology we should hopefully see a levelling in prices.  As The Inquirer points out, this is not bad news for Samsung, SK Hynix or Micron who are all seeing very nice profits. 

Next time you are thinking about purchasing that shiny new phone, think about your computer for a moment before pressing add to cart.

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"Prices, according to DRAMeXchange, increased by around five per cent in the third quarter, and buyers can expect to pay even more in the foreseeable future."

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Source: The Inquirer

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November 15, 2017 | 12:34 PM - Posted by Luthair

Currently demand far outstrips supply

This seems unlikely, otherwise we'd be seeing periodic stock issues on RAM, graphics cards, etc.

November 15, 2017 | 12:58 PM - Posted by CNote

It would be nice if Android could put a lock down on how much ram apps an use like Apple, atleast to a logical degree, since we now have Androids with less than 1gb upto 8gb RAM.

November 15, 2017 | 01:31 PM - Posted by unacom

I really hope the Chinese hardware companies start producing DRAM soon. This hustling by Samsung is getting annoying. The RAM price has doubled in a year!
I don't entirely buy the shortage story. It's like the HDD price increase from a few years ago. Yes, part of the reason was the damaged one to the plants. But there was also one last Hail Mary to maximize profits before SSD started really taking off.

Since next year China is entering the DRAM market, this is the current occupants', mostly Samsung, attempt to maximize profits before competition muscles in..

November 15, 2017 | 02:23 PM - Posted by SmellsSupplySideOdorsFromDenmark (not verified)

It's more than Samsung and that's some Triangle Cabal of DRAM suppliers at the TOP that set the prices for the entire industry. This article(1) lists the top six but the top 3 are really the big suppliers with plenty of resources to have avoided this little "Shortage" but just are getting a little extra markups with some Questionable plausible deniability by blaming the phone market. These DRAM intrests employ the best consultants in the business and they did have prior knoledge of the necessary growth projections induced by the smart phone markets, don't let them fool you on that.


"Guess who's getting fat off DRAM shortages? Yep, the DRAM makers
Samsung, SK Hynix and Micron burp as PC memory prices jump 30 per cent"

November 16, 2017 | 09:28 AM - Posted by Anonymous4324 (not verified)

The same players involved in DRAM price fixing 15 years ago.

November 26, 2017 | 11:07 AM - Posted by Piney (not verified)

I think it's great to see the chip manufacturers profitable. They deserve it for the incredible technology they produce. No one complained about prices 1.5 yrs ago when they were losing money. Apple and others kicked them when they were down. Turnabout is fair play. No Samsung is making more off each iPhone than apple. Maybe apple ought to buy micron or Intel instead of just using them and complaining when supply is tight

November 16, 2017 | 09:27 AM - Posted by Anonymous4324 (not verified)

Its rather convenient that all incumbents decided to be cautious and limit capacity expansion until after Chinese capacity starts to come online.

November 15, 2017 | 04:24 PM - Posted by Piney (not verified)

Less than 2 years ago they were loosing money and being played by cell phones makers. Retribution is sweet. Buy some micron stock and enjoy the ride. It's also the likes of Nvidia with gpus and Intel with server chips that are consuming tons of dram. I doubt this with end soon. It the new age of cloud and ai

November 16, 2017 | 09:24 AM - Posted by Anonymous4324 (not verified)

I'd just recommended everyone hold on to their receipts in case of future class action settlements.

November 18, 2017 | 12:25 AM - Posted by razor512

Smartphone sales didn't change that much over the past year or 2 to justify such a large price increase, it is 100% price fixing.

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