RAM (Random Access Memory) is crucial in any electronic device, including computers and smartphones. It is used to store data while the device is in use, which allows for faster processing speeds. The price of RAM has been increasing due to the basic economic principles of supply and demand.
When you use a computer, all the data and application programs you are working on are stored in a type of Memory called RAM (Random Access Memory). Think of RAM as the computer’s short-term memory – it stores information temporarily while the computer processor needs to access it to complete a task. Once the job is completed, the data is usually removed from the RAM to make room for new data. RAM can be expensive due to the basic economic principles of supply and demand and the fact that only a few companies manufacture and supply the majority of RAM to the world.
For many reasons, RAM has become expensive because of several causes, such as the complexity of technology, the wide use of many applications, the low and high demands of supply and others. To make everything clear to you, in this article, I have offered a clear picture to explore the reasons why the RAM is so expensive.
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1. High Demand and Less Supply
If it is about specific products, then the theory of supply and demand is a significant factor in determining the price in basic economics. In recent years, the products and digital world have attracted so many people towards them, and people have become more interested in these gadgets, materials and technology. The connection among people has also become so strong through the internet and digital media. All these demands have increased the price of RAM.
In the market, you will not find a lacking of manufacturers of RAM. Hence, the hardware does not produce by more companies, so; the increased production does not require dealing with the demand. The price of RAM increase because of the shortage of production of RAM by the companies. Due to the lower competition in the market, just a few companies operate RAM market. From consumers, these markets demand a high price, and they have control over supply as well.
2. Complex Technology
The RAM creation procedure is not that easy as it demands more technical equipment for the product. For the creation of chips, the impurities present in the silicone cause damage, creating problems. Companies must keep their environment and surroundings clean to improve production.
The RAM manufacturers require engineering expertise along with high-tech equipment. Because of this, the attachment of the RAM is crucial to the printed circuit board (PCB) or the mainboard of the given product where it has to use.
Under expert engineers’ supervision, preventive measures are taken to ensure the environment is clean, as the PCB is delicate to handle. The manufacturers have to bear the cost as the production of RAM is quite complex in this way.
The manufacturers must invest from a hundred to a few million dollars on every machine.
The method of RAM production is so complicated that nothing else seems more complex than this, and the consumers suffer high prices because of this complexity.
3. Wider Applications and Uses
The increase in RAM technology also increases the number of users and its applications. The false assumption among people is famous which is not true that the people using computers and PCs, the RAM is only limited to them.
The speed of the users is increasing incredibly as its proof is new smartphones and tablets, which are rolling out excellently. The rate of tablets and smartphones improves due to the RAM present in the hardware.
The users of renowned firms like Samsung and Google compete to provide the latest technologies. These technologies have excellent RAM. The RAM manufacturers get a handsome amount from these companies, so it will be easy for them to use the chips in their devices. But it cannot happen because the RAM manufacturers get much from top-ranking companies like Samsung, Google and Apple. These companies pay top dollar for the products.
Companies will start rolling out Memory for mobile devices when this occurs, even if it means increasing prices. Since the supply of Memory for computers has not kept up with the demand, the price has risen rapidly.
4. COVID-19 Supply Chain
COVID-19 has caused damage to production and the supply chain. Since the epidemic shows no signs of dying down, the effects continue. Everyone stayed indoors during the first few days of the lockdown and quarantine, and output fell.
It greatly disturbed the Memory supply chain. Making RAM is not straightforward because you do more than operate the factor. Instead, several factors are required to produce high-quality Memory.
These parts supply from all over the world at different costs. Because of the spread of COVID-19, there needed to be more workers, a failure in operations, and a decrease in cross-border trade.
The cost of acquiring such components increased due to all of these issues. These high production costs eventually pass on to the consumer. It will take time for businesses to get to where they were before COVID-19, as the supply chain is still experiencing some disturbance.
RAM makers still have to pay a lot, so expect prices to stay the same.
5. Chip Shortage
An ongoing shortage of chips has recently pushed up the cost of every part of a computer system. This shortage does not significantly impact RAM, but future DDR5 RAM is.
Due to the shortage, the already high variation in RAM prices expects to increase. Since 2020, the world has been experiencing a chip shortage, which hopes to continue.
Memory access memory (RAM) production and other electronics like computers and smartphones will be impacted as long as the chip crisis continues. Although the situation is improving, the long-term effects of the current chip shortage on prices are unknown.
6. Natural Disasters
In the same way, natural disasters affect manufacturers and markets and the price of RAM.
In 2012, for instance, numerous RAM-making companies in Thailand were impacted by flooding. Since this was affecting output, prices eventually started to climb.
The electronics industry is not immune to the flaws exposed by recent events. It is because these items typically only come from small communities at risk that can be hit hard by natural disasters.
Among the leading RAM manufacturers are Taiwan, China, and Thailand. The RAM manufacturing and distribution process would be disrupted if a natural disaster hit any of these locations. Although these occurrences do not happen often, they can cause Memory prices to rise.
7. Rise in the Prices of Raw Materials
It is producing Memory without the components that go into making it would be impossible. There has been a general increase in the cost of these products and materials worldwide, which has dropped the price of RAM.
RAM makers, like any other business, must turn a profit. Thus they must pass on the high cost of materials and work to the end user. There will be no RAM price drops while these costs are increasing. RAM must be cheap and widely available, so manufacturing costs must be low.
Since the cost of living is increasing worldwide, that is not happening soon.
8. Labor Costs
RAM prices are higher than they could be because of labor costs. Developing a high-quality RAM is challenging since it calls for the knowledge of many experts.
Professional specialists and consultants help manufacturers optimise their RAM production processes. As a result, businesses must invest heavily to gain access to this level of expertise.
The reason being everyone is looking for an edge in the market and is willing to spend top cash for advice or the services of specialists. The consumer bears the final payoff for all these minor expenses. Businesses will often spend a lot of money on top-tier Memory.
Conclusion:
Why RAM is so expensive: a countdown from ten. In addition to their creation being employment and precise, the recede and flow of demand and supply for computers and other technological goods make their purchase price relatively high.
The worldwide supply chain was also impacted by COVID-19, contributing to price increases in many sectors. While prices have fallen somewhat, they will continue to rise as long as the supply chain remains unstable and inconvenient.
Unless there is a shift in production, prices will remain stable. What Memory will cost in the future is something only time can tell.
