What's up with Memory Prices?

Nikhil Rastogi

Memory prices have been on the rise, almost double in the local market. However, whatever goes up must come down.

Between the months of January and end of March, memory prices had hit rock bottom. Hynix 128mb Ram module (PC-2100 or DDR 266MHz) was selling for as low as Rs.850. Strangely from April 1st onwards, prices of DDR Ram started to shoot up over-night. The same Hynix module now costs around Rs.1,300.

"Umesh Modi, CEO, Abacus Peripherals said, "Since the second half of March the prices are steadily climbing and is currently up by 15 per cent. The price increase is mainly due to the upgradation of the machinery to produce the DRAM chipset, newer technology etc. Moreover there have been reports that the vendors are not able to meet the current demands." As reported by channeltimes.com

When Techtree asked local Lamington Road dealers, we received numerous ambiguous responses. One dealer said, "We've no idea why the prices have gone up, but we do expect them to come down after the elections." Interestingly, another dealer under anonymity said "The price inflation is entirely artificial, RAM hardly gives us any margins. The inflation will actually give us some profit."

Whatever the case may be, the basic fact still remains that high price is a major deterrent for the Indian consumer. So holding off those RAM purchases till May 15th (when the elections end) seems like the only alternative, though a rumoured one.

From: http://www.techtree.com/techtree/jsp/showstory.jsp?storyid=5281