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[Kit] Samsung does not expect computer memory prices to drop next year

post #1 of 74
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http://www.kitguru.net/components/memory/anton-shilov/samsung-does-not-expect-computer-memory-prices-to-drop-next-year/
Quote:
Although Samsung Electronics plans to significantly boost its production capacities in the coming years, the company does not expect prices of dynamic random access memory to drop in 2015. Chief executive officer of the company is confident that DRAM prices will continue to be favourable for manufacturers.

Manufacturers of memory chips reported strong profits this year since prices of DRAM are fairly high. All memory makers tried to constrain supply of products in order to keep prices at high levels. However, if one of manufacturers significantly increases capacities and supply, DRAM prices will collapse, causing losses for all makers.
post #2 of 74
Quote:
All memory makers tried to constrain supply of products in order to keep prices at high levels.

sounds like collusion
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post #3 of 74
"Favorable for manufactures". What about, "Favorable for consumers"?
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post #4 of 74
This sucks badly thumbsdownsmileyanim.gif
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post #5 of 74
Quote:
Originally Posted by CasualCat View Post

sounds like collusion

IT IS!!!
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post #6 of 74
Quote:
Originally Posted by CasualCat View Post

sounds like collusion

Only if they agreed together to do so. Oftentimes a company will release only a limited number of a specific product in order to generate higher prices. Bugatti and Maybach do this, and it's not illegal or even immoral.
Quote:
Originally Posted by Zen00 View Post

"Favorable for manufactures". What about, "Favorable for consumers"?

That is not their concern. Their concern is to bring value into the marketplace and to be compensated for it.
Quote:
Originally Posted by TheMentalist View Post

This sucks badly thumbsdownsmileyanim.gif

Agreed.
Quote:
Originally Posted by cdoublejj View Post

IT IS!!!

See above.


EDIT: You omitted critically important information in your quoting. Allow me to elaborate:
Quote:
Some industry observers are concerned that the addition of the factory will negatively affect prices of computer memory since the fab will create oversupply. Other analysts believe that since the factory will not come online until 2017 it will not affect DRAM pricing in the short-term future.

Manufacturers of memory chips reported strong profits this year since prices of DRAM are fairly high. All memory makers tried to constrain supply of products in order to keep prices at high levels. However, if one of manufacturers significantly increases capacities and supply, DRAM prices will collapse, causing losses for all makers.

Samsung Electronics plans to significantly boost its production capacities in the coming years

They are INCREASING their supply which will drive prices DOWN. Also notice the bit about manufacturers boosting capacities and supply. That's why collusion generally doesn't work in a competitive marketplace. Someone is going to go for the low hanging fruit and put the others out of business
Edited by coachmark2 - 10/20/14 at 4:22pm
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post #7 of 74
Samsung is frigging scary.
post #8 of 74
should have bought 16 GB when it was cheaper, everyone said "8GB is plenty" sure its plenty but with the prices 16 was a steal at that point in time
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post #9 of 74
2017 until the new factory comes online... That's a long time to live with high prices.
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post #10 of 74
Quote:
Originally Posted by Mattbag View Post

should have bought 16 GB when it was cheaper, everyone said "8GB is plenty" sure its plenty but with the prices 16 was a steal at that point in time
Yeah I've been wanting to upgrade RAM but at its current price point, ha. No. I guess I don't really need 16GB of RAM though.
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