The latter is highlighted by the recent adventures of an Australian enthusiast's struggle to return his RAM kit for a warranty replacement, owing to the fact that the kit has quadrupled in price since he bought it. Retailers try their best to protect themselves from scarce availability and constantly fluctuating prices, all while consumers have to resort to paying highly inflated prices for what were once affordable staple items.
SP's statement is conditional and seems to indicate that in the case of an RMA, the SP store will make an attempt at replacing the item, but also prepares buyers for the possibility that they won't get a replacement unit. This is almost certainly due to the fact that flash chips have multiplied in price and become absurdly scarce , particularly for smaller companies.
You may like Memory vendor under fire for imposing hefty 15% depreciation fee on returns despite skyrocketing RAM value Retailer denies memory replacement due to 4x increase in DDR5 pricing, says price increase would equate to an 'upgrade' for the customer 'This memory situation is a multi-year problem,' says Maingear CEO As for its UK web-store, Silicon Power doesn't have a specific notice, and its warranty policy simply states that "due to ongoing technology or in case of discontinuity of any product, SP will be unable to repair the product, and therefore replace the product with a comparable one."
We took the opportunity to do a cursory browse of major memory and SSD manufacturers' RMA policies, and at the present time, we found that at least on paper, almost every major player says it will honor a replacement. Having said that, as the crises tighten, these policies might well change, and sooner rather than later. Note that our findings are consumer advice and not legal analysis:
Corsair – Replacement: "If your Corsair product is not operating in accordance with its published technical specifications, the product will be replaced at Corsair’s expense."
G.Skill – Replacement, conditional: "Any replacements provided will be with the same product model. This warranty obligation is conditioned upon the hardware being returned to the original place of purchase, or another place as directed by G.SKILL […]."
Kingston – Replacement: "Kingston will, at its option, either repair or replace any part of its products that prove defective by reason of improper workmanship or materials."
Western Digital – Replacement, then equivalent item, then refund: "Western Digital will provide a Customer Replacement Unit (CRU) […] it may instead provide a product with at least equivalent capabilities to the failed Product. […] If Western Digital cannot provide a CRU replacement or an equivalent product, it may instead provide the user with a credit."
Samsung – Replacement, then refund at current market value: "(1) repair or replace the Product with new or refurbished Product of equal or greater capacity and functionality; or (2) refund the then current market value of the Product at the time the warranty claim is made to SAMSUNG."
Sandisk – Company chooses replacement or refund at current market value. "(1) repair or replace the Product with a new reconditioned or refurbished Product of equal or greater capacity, or another equivalent product; or (2) refund the current market value of the Product at the time the warranty claim is made."
The fact that nearly every company says it will honor a replacement is relevant against the backdrop of regional consumer protection laws. Most buyers' primary point of contact will be the store where they bought their hardware, but while most regional laws provide the buyer with multiple degrees of protection, for primary Western markets, the seller is apparently not obligated to replace the item and can instead issue a refund if said replacement would prove too onerous.
That seems to be the case with the European Union directive 2019/771 , article 13.1.2.a, that sates that the consumer does have a choice between repair or replacement, "unless the remedy chosen would be impossible or, compared to the other remedy, would impose costs on the seller that would be disproportionate". The RAM price rise of 4-5x since last year would likely qualify, though individual EU member-states may offer additional protection, however.
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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/desktops/pc-building/SPONSORED_LINK_URL
- https://www.tomshardware.com/desktops/pc-building/silicon-power-us-rma-policy-now-hedges-against-ai-driven-ram-and-ssd-shortages-company-says-it-will-refund-the-original-purchase-price-if-there-is-a-shortage-of-replacement-products#main
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Informational only. No financial advice. Do your own research.