Why is RAM so expensive? Clearly explained

RAM is currently more expensive than it has been for a long time. We explain why you currently have to dig deep into your pocket if you want to upgrade your PC or notebook with more RAM.

The high price level for RAM chips explains

The high storage price results from an unfavorable relationship between supply and demand.

• There is currently a strong demand for memory modules. This applies in particular to computers and notebooks, which have an increasing need for working memory due to increasing software and performance requirements.
• The situation is similar in the server area. In particular due to the ongoing trend towards the use of cloud computing and virtualization, central systems have to be equipped with sufficient RAM and can be scaled if necessary.
• The fact that mobile devices are becoming increasingly powerful should not be underestimated. For example, there is an ever increasing need for memory on tablets and smartphones.
• In contrast, there are only a few large storage producers. These have a certain market power and are able to dictate high prices. Smaller manufacturers usually do not have the capacity to produce the corresponding quantities.
• Furthermore, during a temporary drop in demand a few years ago, the manufacturers have reduced their production capacities for RAM modules in favor of flash memories, such as SSDs. As a result, the price will be further increased due to the increased demand due to the tighter supply. An end to this trend, which has continued since around mid-2016, is currently not in sight.