I’m not going to look this up, because I’m expecting that there’s a number of reasons, but you can pretty much point the finger at supply and demand of components, as well as inability for companies to scale production, and the fact this is likely a bubble.
Think about it from the standing of a ram manufacturer. You’re already pumping out as much product as physically possible, or you need components or materials from other vendors. You aren’t just sitting on idle machines, if there’s a market what what you’re doing, you’re going to push as much of it as you can. All of a sudden, you can charge more because there’s a ram shortage, but you can’t scale up your business because with this rise there’s likely to be an equal fall in the not too distant future, and scaling up production is a slow process. Even if you did, there’s a strong possibility that you’d be restricted by other bottlenecks.
It’s a huge business risk for not much reward. Better to take the win, do what you can try maximise it without exposing yourself to potential losses.
Actually this is incorrect. The RAM manufacturers operate as a cartel and purposefully restrict the supply of RAM so they can sell less at much higher margins. They have been caught doing this 20 years ago and they are doing it again but now everyone is buying their excuse.
It also takes time to increase production so when they spin down to reduce supply they cannot just immediately spin it up again.
This is why we’re looking at “shit sucks” until around 2028 and why we’re all hoping the Chinese companies role in and take their legs out from under them.
It’s already starting to happen, Corsair is using CMXT memory now.
I’m not going to look this up, because I’m expecting that there’s a number of reasons, but you can pretty much point the finger at supply and demand of components, as well as inability for companies to scale production, and the fact this is likely a bubble.
Think about it from the standing of a ram manufacturer. You’re already pumping out as much product as physically possible, or you need components or materials from other vendors. You aren’t just sitting on idle machines, if there’s a market what what you’re doing, you’re going to push as much of it as you can. All of a sudden, you can charge more because there’s a ram shortage, but you can’t scale up your business because with this rise there’s likely to be an equal fall in the not too distant future, and scaling up production is a slow process. Even if you did, there’s a strong possibility that you’d be restricted by other bottlenecks.
It’s a huge business risk for not much reward. Better to take the win, do what you can try maximise it without exposing yourself to potential losses.
Actually this is incorrect. The RAM manufacturers operate as a cartel and purposefully restrict the supply of RAM so they can sell less at much higher margins. They have been caught doing this 20 years ago and they are doing it again but now everyone is buying their excuse.
^ this is it.
It also takes time to increase production so when they spin down to reduce supply they cannot just immediately spin it up again.
This is why we’re looking at “shit sucks” until around 2028 and why we’re all hoping the Chinese companies role in and take their legs out from under them.
It’s already starting to happen, Corsair is using CMXT memory now.
Correct. They’re also manufacturing slightly less than they did the year prior iirc.