It appears that the massive rise in DRAM pricing will now affect consumers directly, as ASUS's co-CEO warns that the industry might not be able to sustain the current pricing structure.
ASUS Warns That Rising RAM Prices May Impact Retail Situation of Devices Like Laptops, Mini-PCs, Handhelds & Many More
For those unaware, consumer memory prices are currently going 'out of the roof' driven by massive demand for DRAM by the AI segment. Manufacturers like Corsair, Adata, and others have reported a 'order halt' situation following the radical increase in prices, and with that, it seems like PC manufacturers like ASUS are going to be affected next. In a report from Taiwan's Liberty Times, ASUS's co-CEO has commented on the recent situation surrounding memory prices, claiming that it's a "common problem" for the industry. However, if imbalances persist for a longer time, prices are expected to increase.
For distribution channel pricing, ASUS will take into account costs, distribution partners and consumer demand, and then adjust the product mix and adjust product prices accordingly.
- ASUS's co-CEO (Machine Translated)
ASUS is one of the largest partners for CPU/GPU manufacturers in the industry, and the rise in memory prices may make it difficult for the firm to sustain its inventory levels. And, given that devices like laptops, mini-PCs, and pre-built systems feature consumer memory onboard, we can expect to see a significant change in prices moving forward, especially since demand from the AI industry isn't likely to decline, particularly for DRAM-based products like HBM and DDR memory.
And interestingly, the RAM shortage is expected to bring a 'surge' in interest around consumer PC products, which is why inventory will deplete a lot more quickly compared to standard times. More importantly, being under the Windows 10 EOL timeline, many consumers are looking to switch to newer platforms like AMD's AM5, which is why demand from the upgrade cycle is also present. Based on what we are seeing, memory prices aren't expected to stabilize anytime soon; instead, they could even rise from this point.
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