Memory prices continue to rise, as demand increases with a tight supply. There are several factors within the industry that cause component price fluctuations, but specific to memory devices, why are we seeing the significant price increases?
One main factor includes primarily smartphones. Mobile phone production using DDR4 (Double Data Rate) chips is on the rise. A few phone brands that are considered to be big players in the market have recently introduced phones in the US. Furthermore, Samsung’s Note 7 debacle caused the company to scramble to replace their exploding phones. This leaves the DDR4 market under more strain than ever.
Additionally, solid-state disk (SSD) prices are experiencing the same outcome. This means anyone looking for a new device is going to experience higher prices on other memory components as well. RAM prices started rising sometime in the middle of 2016, and reportedly, things aren’t going to improve anytime soon. The reason for the increase in RAM prices is similar to the reason it affects SSD prices – issues such as power outages affecting DRAM manufacturer Samsung have decreased RAM supply while demand continues to go up.
Servers and mobile devices are the primary drivers of the increased demand, particularly as Android smartphones continue to increase the amount of installed memory. The other interesting factor is that OEMs (original equipment manufacturers) have been willing to pay more simply to guarantee supply – it’s heating up the market.
Advanced MP Technology has established and maintained expert memory sourcing and purchasing teams worldwide since 1978. This enables us to have access to the individual local market and quickly provide the best value to our customers globally. We focus on mitigating shortage management and keeping our customers’ TCO (total cost of ownership) low by qualifying our suppliers and ensuring we are rendering the best value quality product. We have the resources and staff in place to be our customers’ dependable and full service supply chain partner.