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A DIMM Future for RAM Bundles

VeggiePossum23 writes "PC WORLD has an article about rising concerns that computer manufacturers will be cutting the amount of bundled RAM they sell with their PCs owing to rising prices of dynamic memory. The article claims that spot pricing shows a rise of almost $15.00 for 256MB modules of DDR DRAM in some markets. According to a Reuters article on ZDNet, the price rises are caused by shortage of memory chips, and this is causing the prices of memory to raise at the fastest rate in four years. Even Intel is said to be worried at the overall trend of price hikes for all types of memory. The Inquirer has a similiar article from a couple of weeks ago which includes a chart showing how the third-party memory manufacturers are doing. Kingston tops the chart for revenue."

25 of 344 comments (clear)

  1. That's a bummer by thebra · · Score: 4, Insightful

    glad I just upgraded. Even if it increases 15.00 dollars its still so much cheaper than it used to be.

    1. Re:That's a bummer by droleary · · Score: 2, Insightful

      Ummm, this isn't an Apple fanboy site. Hell, this isn't even apple.slashdot.org. So it's not really the place to boast you paid more for Apple branded upgrade components.

      You're clearly not a very bright boy. I'm poking fun at people who pay crap loads for their systems, Mac or PC. Get it now?

  2. Stopped Dumping by randomErr · · Score: 1, Insightful

    You mean Chinese countries have stopped dumping cheap RAM into the national market? Or is it the booming economy causing inflation?

    --
    You say things that offend me and I can deal with it. Can you?
  3. Oh no by jabbadabbadoo · · Score: 1, Insightful

    Let's not hope this means the reintroduction of "MemoryDoubler" products. Or SpeedHalfers, as they are sometimes called...

  4. Effects of Price Changes by Tiberius_Fel · · Score: 5, Insightful

    IMHO the reduction won't affect serious computer users except in terms of the cost. If it costs me $50 more to get the 1GB of DDR RAM, well, I'll probably pay it.

    Where it will hurt people is the technologically illiterate, who simply take the default Dell configuration or whatever and then wonder why their systems are always low on RAM.

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    1. Re:Effects of Price Changes by micromoog · · Score: 4, Insightful
      Where it will hurt people is the technologically illiterate, who simply take the default Dell configuration or whatever and then wonder why their systems are always low on RAM.

      In other words, almost everyone buying computers.

    2. Re:Effects of Price Changes by huchida · · Score: 3, Insightful
      They are either stupid or ignorant (ignorance is generally a side effect of stupidity, since those of us who aren't born with some sort of actual mental defect have more or less the same mental capacity. I define stupity as a lack of desire to learn), and thus will be duped it's the natural way of things.

      I have the feeling there's a plumber, electrician, car mechanic, lawyer, accountant, or other skilled professional out there who says the same thing about you.

  5. Switching over by doormat · · Score: 4, Insightful

    A lot of the shortage has to do with the fact that companies are not starting to split their resources between DDR and DDR2. Between that, and the fact that it seems like companies may buy lots of replacement computers this year (2001 was the last strong year for purchasing, and 3-year replacement cycles are typical).

    So yea, be prepared to pay higher prices for gas, milk (and associated dairy products like ice cream), meat, RAM and who knows what else this year.

    --
    The Doormat

    If you're not outraged, then you're not paying attention.
  6. How come toasters are so cheap? by newt_sd · · Score: 4, Insightful

    Ok how come the toaster manufacturers and automobile manufacturers don't seem to have this supply and demand problem? I chose these two because one seems pretty simple to make and the other exponentially more difficult and yet I can buy either without having to worry about significant increases in pricing each week. I just don't get it.
    Then again I didn't read the article either

    --
    ***I GOT NUTHIN***
    1. Re:How come toasters are so cheap? by molarmass192 · · Score: 5, Insightful

      Those are finished products, not components. Think plywood and sheet aluminium for better examples. The price of both of these varies a lot but the finished products homes and soda cans is relatively stable. A RAM module on it's own doesn't do a whole lot, it's just a component. The component price can vary like mad but video cards and MP3 player prices would be realtively stable. The problem is that those prices are stable, but within a rising trend.

      --

      Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws-Plato
    2. Re:How come toasters are so cheap? by stratjakt · · Score: 5, Insightful

      Toasters are made using a wholly different process, to much weaker tolerances. There's no uptight timing or voltage requirements for a toaster.

      Setup cost for a toaster factory would be minimal compared to chip fabs, and there are no doubt more toaster factories out there. When one toaster factory burns down (as some big chip fab did not to long ago, IIRC) its more easily replaced, and doubtless has minimal impact on the worlds toaster resources.

      Plus the demand for toasters is pretty constant. People buy toasters when their old one breaks. They dont rush out to buy a 5% faster "upgraded" toaster just because it's there.

      With computer tech there'll be a big rush to a tech, it'll get cheap as it reigns supreme, then get pricier as the industry moves away from it. It happened to EDO, FPDRAM, SDRAM, and now DDR as makers want to move quickly into the more lucrative DDR2 market. You can see the same trend with CPUs and other chipsets.

      --
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    3. Re:How come toasters are so cheap? by TwinkieStix · · Score: 2, Insightful

      They can? Doesn't there need to be some sort of monopoly or collusion for price-fixing to even have a chance? Is there some guy pulling strings we don't know about here, or are you just blaming a conspiracy theory?

      Honestly, there have been some valid reasons for the memory problems including the buying cycle effecting demand, and the changeover to DDR2 effecting supply. These are real world variables that can be tracked and documented with evidence. For an incredibly complex unit like a RAM module and the amount of heavy metals used, I am supprised that the price is actually as low as it is. It indicates to me that there is adequate competition and prices, while instable (due to the fact that it's not a finished product), are about as low as they can get.

    4. Re:How come toasters are so cheap? by Tumbleweed · · Score: 3, Insightful

      What you don't realize is that there are very few actual makers of memory chips (modules are different). There have also been numerous proven cases of dumping over the years. It happens. The margins on RAM _are_ razorthin, though. Only harddrives have similar margins these days. I'm still seeing GeForce 4mx (MX!) cards going for over $100, while others sell for under $50. Some computer cases go for under $50 (WITH PSU), while others go over over $200 (withOUT PSU). That's the way the industry has evolved.

  7. Didn't they say this when... by E-Lad · · Score: 4, Insightful

    ...that epoxy factory in Japan burned to the ground in the mid-late 90s?

    I remember all the talking heads saying RAM prices would be exhorbinate for YEARS to come.

    Supply problems are short-lived, really. /ek

  8. Bundled RAM too pricey anyway... by kzinti · · Score: 3, Insightful

    I always buy the minimum amount of memory offered when I buy a pre-built system. The OEMs want too much $/byte for pre-installed memory. The most cost effective way to get memory for a new system is to buy it from somebody like Crucial/Micron.

  9. Re:The other reason by donnyspi · · Score: 5, Insightful

    It's sad that people need to reserve tons of memory for the OPERATING SYSTEM itself and not just the programs that run on top of it.

  10. The wide price swings... by Jake+Diamond · · Score: 5, Insightful

    are because the industry is so cut-throat. In good DRAM times, companies crowd in, adding new production capacity and trying to make a quick buck. They know this is going to kill prices a couple years down the road, but if they don't do it, they'll be left out in the cold as competitors grab their market share. Sure enough, a couple of years later oversupply kicks in. Companies manufacture less DRAM, shift production to more profitable products, etc... And the cycle begins anew. I really don't know what started it, unless it was the 1987 DRAM crash, when all but one US manufacturer dropped the DRAM business due to intense Japanese competition. (And illegal dumping, as it turned out.)

    Adding to this now is a fairly major transition from 200-300mm wafers. No matter what the DRAM companies tell you, they're never as good with their process as they claim they are. (I used to work for one of them.) Everyone is struggling to some degree with 0.11 micron compared to 0.13, and everyone (except perhaps Infineon, who started with it about three years ago) is struggling with 300mm wafer technology compared to 200mm.

    Add it all up, and it very likely is a legitimate shortage. No price fixing here.

  11. Collusion, Collapse! by throatmonster · · Score: 3, Insightful

    1. Ram mfgs get together, collude to raise prices
    2. Brokers sell stocks of Ram mfgs on promise of increased profits
    3. Collusion breaks down as mfgs increase production to take advantage of better margins
    4. Prices go even lower

    Lather, rinse, repeat.

    --
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  12. Still cheap by NineNine · · Score: 3, Insightful

    Considering that the last time I bought RAM, I paid $1/MB, current RAM prices could quadruple, and I'd still be happy. Besides, what kind of apps do you need more than say, 256MB RAM? Hell, most machines I see these days ship with 512MB, which is more than I need.

  13. This is even worse news for AMD by X · · Score: 2, Insightful

    I should think AMD should be even more worried. Their whole 64-bit computing initiative stood to gain a huge boost in the coming year as Windows 2003 finally got 64-bit support and server configuration with >4GB became mainstreamed. Now, folks might be looking at the larger memory requirements for 64-bit systems and try to stertch it a bit with a 32-bit Intel processor for a bit longer.

    --
    sigs are a waste of space
  14. Again and again by Maljin+Jolt · · Score: 2, Insightful

    This "news" about top memory pricing repeats itself every halfyear for 20 years. Perhaps it's time to hit those international memory syndicates?

    --
    There you are, staring at me again.
  15. Seen it all before by Anonymous Coward · · Score: 1, Insightful

    I'm old enough to have seen the cycle through a number of times now. Price hikes in RAM always happen about 6-9 months before the price goes through the floor on the next development cycle.
    Get ready for VERY cheap RAM again in 2005.

  16. Re:why more ram anyway? by AuMatar · · Score: 4, Insightful

    I want that. I'm sick and fucking tired of games that require me to buy new hardware, but have nothing new but slightly improved graphics. If you need a higher CPU/RAM for some awesome new kickass gameplay or AI, thats cool. But graphics are good enough already. Forget about graphicas and work on gameplay. Gameplay for the past year or two has been SEVERELY lacking. WHo the fuck wants to play FPS #12000567 which is the same as #13000566 but with a different name for the shotgun? Until they come out with something that needs more horsepower for the gameplay itself, I should never need to upgrade again- consoles or my computer.

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  17. Re:why more ram anyway? by Vaevictis666 · · Score: 4, Insightful
    Actually the problem right now isn't so much the size of the code. Getting the code smaller would ideally make the game faster, but not any smaller.

    Compare UT2004:

    Executable file: under 2 megabytes
    Entire /System directory (exe, settings, mutators): 56MB
    /Sounds (voice, announcer, shots, ambients): 353MB
    /Maps: 1550MB
    /Textures: 2790MB

    The whole thing is just going in a viscious cycle - the better game engines we have, the more video card power we need. The better the video card, the higher resolution we can run it in and keep it playable. The more resolution, the higher quality graphics we need on screen. The higher quality the graphics, the more space they take up. Textures alone take up half of the UT2004 install footprint. If you want to start reducing install sizes, start on the graphics quality first.

  18. Buy slower memory by Wolfier · · Score: 4, Insightful

    In most cases, it's the quantity, not speed, that matters anyway. The mantra is, keep everything in memory to minimize disk I/O since even the slowest memory is faster than the fastest disk.

    If I have to choose between 512MB of Dual Channel RAM and 1GB of Single Channel for my PC, I'd pick 1GB. Choice is easy.