Why such a price jump 4GB vs 8GB memory?

[BasilFawlty]

I was just looking on OWC web site for memory upgrade (I have the basic 2 x 2 GB = 4GB) in my new 27" iMac and am thinking of upgrading). OWC sells a pair of 4GB (8GB) for $87.99, but to get a pair of 8GB, the price makes a quantum jump to $1459.99!! Geez, I can understand a price differential, but that seems like a huge jump! Not that I need that much memory, but I'm just wondering why such a huge difference?

 

[simsaladimbamba]

Because 8GB modules of that size are very new, they have been released at the beginning of 2011, while 4GB modules in that were available since 2008 or even earlier.
And they have not yet enter mass production like 4GB modules, as there is not that much demand yet.

 

[BasilFawlty]

Because 8GB modules of that size are very new, they have been released at the beginning of 2011, while 4GB modules in that were available since 2008 or even earlier.
And they have not yet enter mass production like 4GB modules, as there is not that much demand yet.

Ok, that makes sense! Hopefully over time (like when I feel the need to upgrade), the prices will come down, just like 2TB hard drives are now a dime a dozen!

 

[johnfkitchen]

The big issue is that manufacturing yields for bleeding edge chips are quite low, hence the build cost is high until experience in manufacturing process raises yields to economic levels. That drives costs down, which allows prices to drop, which fuels demand, which drives volume, and further reduces manufacturing costs. And so on!