You'll get your Mac news here from now on...

Help TMO Grow

Subscriber Login

Advertising Info


The Mac Observer Express Daily Newsletter


More Info

Site Navigation

Home
News
Tips
Columns & Editorials
Reviews
Reports
Archives
Search
Forums
Links
Mac Links
Software
Reports
Contact

September 9th, 1999

[8:00 AM]
Warning: Higher RAM Prices, Dead Ahead!
by Kyle D'Addario
If you have been doing any shopping over the last couple of weeks for memory for your computer, you have probably noticed some crazy happenings regarding RAM prices. Trans Intl. had 128MB memory modules for the Blue and White G3 listed at US$128 last week. Since then the price jumped to US$168, and finally to US$225 at the time of this writing. The same module at Ramjet.com has gone from the mid-US$100 price range to US$249 during the same time frame.

According to experts in the memory market, the rise in RAM pricing is not over.

Ramjet.com President, Aaron Buckley, states that prices have "...more than doubled in the last two and a half months." While the consumer is aware of the price increase, most are unaware why. The bottom line is that component prices have shot up significantly. Mr. Buckley sites a number of reasons for the increase, including power outages in Taiwan and a failed modified manufacturing process at another major chip maker. However, the latest increase is an example of being victimized by one's own success...computers themselves are selling in record numbers. This has had a corresponding effect on RAM by pushing an already tight market even harder.

Ken Zaide from Transintl.com agrees. Mr. Zaide states that "Robust growth in the Telecommunication and Computer industry is the key. The amount of OEMs has exceeded the DRAM manufacturing capabilities to supply it right now." Mr. Zaide also said that during the booming stretch of computer memory, there were 18 or 19 manufacturers. Now there, "...are three or four."

What does this mean to the average consumer?

The industry in general has shifted toward more RAM intensive applications over the last few years for a number of reasons. The main one being that previous rock bottom memory prices have made it possible for developers to count on users having more of it. With a minimum of 32MB standard in every shipping computer, and most actually having at least 64MB out of the box, it is now possible to take software development to the next level. That is not going to change. Those who use RAM intensive applications, ranging from Netscape Communicator and Adobe Photoshop to Unreal and Quake, are going to feel the crunch. Memory requirements are not going to diminish, while it seems that prices are going to continue to rise in the near future.

As Mr. Buckley put it, "Unfortunately, this will translate into even higher prices for consumers."

This will have an affect on Apple too as what costs consumers more will also cost them. While it's doubtful that we will be seeing a price increase in existing product lines, it could mean that the next iteration of the iMac or PowerBook product line could have a higher price tag. Certainly adding RAM to a Mac at The Apple Store will continue to become more expensive.

This will also have at least some effect on Apple's bottom line, especially if they do not pass all of the price increases in base models directly to the consumer.

[Editor's Note: Trans Intl and Ramjet are both sponsors of The Mac Observer.]

Trans Intl - Ramjet - Apple



Today's Mac Headlines

[Podcast]Podcast - Apple Weekly Report #135: Apple Lawsuits, Banned iPhone Ad, Green MacBook Ad

We also offer Today's News On One Page!

Yesterday's News

 

[Podcast]Podcast - Mac Geek Gab #178: Batch Permission Changes, Encrypting Follow-up, Re-Enabling AirPort, and GigE speeds

We also offer Yesterday's News On One Page!

Mac Products Guide
New Arrivals
New and updated products added to the Guide.

Hot Deals
Great prices on hot selling Mac products from your favorite Macintosh resellers.

Special Offers
Promotions and offers direct from Macintosh developers and magazines.

Software
Browse the software section for over 17,000 Macintosh applications and software titles.

Hardware
Over 4,000 peripherals and accessories such as cameras, printers, scanners, keyboards, mice and more.

© All information presented on this site is copyrighted by The Mac Observer except where otherwise noted. No portion of this site may be copied without express written consent. Other sites are invited to link to any aspect of this site provided that all content is presented in its original form and is not placed within another .