DRAM Glut

Posted on July 27, 2008

Lower prices for memory chips are encouraging PC makers to install more DRAM per box these days, and are prompting DRAM makers to speed-up the introduction of faster, more advanced chips.

A huge decline in prices for the chips is the reason behind more DRAM being used in PCs. PC companies are always adjusting the component mix inside a PC, trying to create a good PC at the right price. In times when prices go up, PC makers add less DRAM, usually meeting the minimum requirements of the software inside. But current market conditions are allowing them to put in a lot more memory without having to raise prices and that’s good for users because increasing PC memory is one of the first things recommended when a PC is sluggish in its performance.

Computer parts makers are already hurrying out chipsets, motherboards and other products able to use DDR3 since they can offer the products to computer gamers and other enthusiasts willing to pay a premium for the latest technology.

DRAM companies have been scrambling to figure out ways to get over the chip glut. DRAM prices have remained near or below the cost of production since late last year. The problem started when they built too many new factories on hopes that Microsoft’s Vista would cause consumers and companies to start buying new PCs by the tons. Vista has boosted the PC market some, but it hasn’t been as fast or broad as expected.