Why has RAM prices gone down so much?

[civilizedrat]

This rapid price decent is stupendous! Just three months ago, the cheapest MacBook RAM was $70+. There's now close to 10 available RAMs for less than $50 (with word of some being $35). Is there something going on? Did hell freeze over?

Exhibit A: Newegg

 

[Eidorian]

1. Post Christmas
2. Post Vista Launch
3. Market Saturation of DDR2-667 RAM

 

[civilizedrat]

2. Post Vista Launch

How does this play a part? Is it because Vista requires at least 1GB to run?

 

[Eidorian]

How does this play a part? Is it because Vista requires at least 1GB to run?

People bought up a lot of RAM to run Vista.

 

[rogersmj]

1. Post Christmas
2. Post Vista Launch
3. Market Saturation of DDR2-667 RAM

1. Not really.
2. Not really.
3. Somewhat.

RAM prices were high late last year (about $100/GB for DDR2-667) because for reasons I don't understand all the major memory manufacturers switched to a new production process at about the same time. I think it may have been related to environmental laws, but don't quote me on that. Anyway, it took them a little while to ramp up production on the new fabrication equipment, and while they were doing that the market was a little wanting for high-speed DDR2 chips. Now that they're up to speed, and now that DDR2-667 is much more common (hence more manufacturers are making it than before), prices are falling.

In January, I bought 2GB of RAM for my iMac and it cost $196, and that was the best price. A month and a half ago, I bought 2GB for my MacBook and it only cost $130. I don't think it will go much lower than it's at right now though, which is roughly $50/GB for a good deal.