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This dramatic DDR5 SO-DIMM price jump tracks closely with desktop RAM, which experienced a similar 500% climb in the past 12 months. But what’s also concerning is that other components have increased in cost, too. Aside from RAM and SSDs, XMG noted that PCBs, electronic components, CPUs, graphics cards, and video memory are also facing similar cost pressures, resulting in higher costs. The war in the Middle East has compounded the situation, especially as increased oil and fuel prices are making air freight costs higher, while also increasing insurance premiums for sea cargo traveling from Asia to Europe via the Red Sea and the Suez Canal.
Because of this, the company says it was forced to increase the prices of several of its models. It also reminded customers that its margins are fixed and that the resulting hikes are solely driven by higher upstream costs. A company representative also said, “If relevant input prices fall again, we will reflect this in our retail prices as well — just as we have done in the past.” This is similar to Framework’s pricing strategy, where it recently cut the memory prices for the Laptop 13 Pro after it was able to find another source for cheaper LPCAMM2
The post also gave a bearish outlook on the memory situation, echoing Micron CEO Sanjay Mehrotra’s words that the DRAM shortages will go well into 2027 . This contrasts with Asus CEO Jason Chen’s prediction that component prices will start reversing in the latter half of 2027 , and that the long-term predictions of high memory costs are just chip makers wanting to retain high gross margins for as long as possible. Chen said that Chinese memory makers increasing their production would help ease the shortage and that price increases are reportedly cooling as consumers refuse to pay more . Unfortunately, we have no way of knowing which of these two perspectives is correct, and we can only wait and see what happens with memory prices over the next 12 months.
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Memory prices climb 500% in 12 months, up to 10x the lowest ever tracked prices
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/laptops/SPONSORED_LINK_URL
- https://www.tomshardware.com/laptops/laptop-maker-says-ddr5-so-dimms-are-6x-pricier-than-last-year-schenker-says-other-component-costs-are-rising-too-announces-price-hikes#main
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Informational only. No financial advice. Do your own research.