Are you building your own computer or looking to upgrade your current PC and have been looking at RAM only to realize it’s very expensive?
Do you want to know the answer to the question, why is ram so expensive? Well, I’ve been researching this topic so keep reading below to learn what I’ve discovered!
Why Is Ram So Expensive?
Ram is expensive because there is high demand and less supply, which in part is driven by supply chain issues. Also, a lot of smartphone companies are retiring DDR3 and moving to DDR4, which means ram prices will go up. Laptop production has been increasing as well, which also makes ram expensive.
Do you want to know the additional reasons why ram is so expensive? If so, continue reading below as I dive into all of the factors that determine the price of ram!
1. High Demand & Less Supply
Ram is so expensive because there is a high demand for it and less supply, so it means the price is going to be higher since it’s scarce but people are seeking it out.
Therefore, until the few companies that manufacture ram step up and produce more quantities, the price will continue to increase as the demand stays high.
2. Supply Chain Issues
In the past couple of years, there have been many supply chain issues that have caused delays in production and manufacturing, which increases the price of ram.
Also, there are issues with getting the other components needed for the ram, which come from various parts of the world, so until the supply chain issues ease, ram will be expensive.
3. Smartphone Companies Use Ram
Ram is expensive because it’s being used by smartphone companies to make mobile devices, and DDR4 chip use is becoming more commonplace as smartphone production increases.
Furthermore, a lot of companies have been replacing the old DDR3 with DDR4, so it’s making the demand even higher than normal for ram.
4. Smartphone Companies Are Willing To Pay More
One issue with smartphone companies using ram is that the companies are willing to pay more to access the ram and have a continuous supply of ram.
Therefore, the ram manufacturers are turning a higher profit allowing the ram to be purchased by the smartphone companies, which means consumers pay higher prices for the remaining stock.
5. Global Chip Shortage Impacts Ram
Ram is so expensive because there is still a global chip shortage occurring, which impacts ram, and until the global chip shortage has stopped, ram will continue to be costly to purchase.
However, we don’t know when the global chip shortage will end or just how much it will impact the prices of ram at the end of the day.
6. Raw Material Costs Increasing
The price of raw materials is increasing and has been increasing for quite a while now, which impacts ram and makes ram more expensive.
Furthermore, until the price of raw materials used to help produce ram even back out, expect to continue paying higher prices for ram in the future.
7. The Complex Engineering Process Involved
Ram is always going to be expensive to an extent because of the complex engineering process involved in making ram, which is made in special factories with very specialized equipment.
Additionally, you have to account for the fact that the machines have to be programmed in a very specific manner, which takes time and you pay for that process through the higher price tag.
8. Labor Wages For Engineers In The Factories
Since ram requires machinery that has to be programmed very specifically, you are paying for the labor wages of the skilled engineers that are needed to program and run the equipment.
Further, a lot of companies are willing to pay higher labor wages to the engineers to get the best workers and produce the best ram possible, which you pay for through the higher retail price.
9. Increase In Laptop Production
Ram is so expensive because there has been an increase in laptop production, and whenever laptop production is high, it will increase the price of ram since ram is needed for laptops too.
Also, laptop production has been in higher demand the past couple of years and while things seem to be evening out, it will impact ram for the foreseeable future.
Inflation is high and when that happens, you pay more for goods and services, which means you’re paying higher prices for ram as it’s costing more money to produce worldwide.
However, when inflation falls, you can expect that ram prices will come down a little bit, but we don’t know when that’ll happen.
11. Higher Fuel Prices
The higher fuel prices impact the price of ram, since components for ram come from all over the world and have to be delivered to the manufacturing facilities.
On top of that, the shipping of the ram from the manufacturing facilities to the stores requires fuel, so as fuel prices increase, the cost of ram increases to maintain profit margins.
To learn more, you can also read our posts on why PC parts are so expensive, why iPads are so expensive, and why 4K monitors are so expensive.
Ram is expensive because it’s used in smartphones and laptops, which are both in high demand, and with DDR3 being retired, it’s making DDR4 popular, and that spikes ram prices.
Additionally, inflation is impacting the cost of ram and making it more expensive, along with the higher fuel prices that are impacting the shipping of components and delivery of ram.
On top of that, companies are willing to pay the specialized engineers more money to run the equipment needed to make ram, so you pay for the increase in labor wages happening.