Despite holding the necessary capital, PC manufacturers are struggling to secure a sufficient memory supply, leaving them with limited options to meet consumer demand.
Manufacturers Are Looking to Sign LTAs With Memory Suppliers, But Supply Remains Severely Constrained
The PC industry has now reached a state of ‘desperation’ according to recent reports, as it is claimed that the DRAM supply lines are so constrained that giants like ASUS, HP, and Dell are struggling to get allocations. Companies are now directly approaching suppliers like Samsung and SK hynix, hoping to secure LTAs for DRAM, but it appears that their efforts are met with significant constraints, since supply is "failing" to keep up with the demand.
The Korean media outlet Chosun Biz [has reported](https://biz.cho…
Despite holding the necessary capital, PC manufacturers are struggling to secure a sufficient memory supply, leaving them with limited options to meet consumer demand.
Manufacturers Are Looking to Sign LTAs With Memory Suppliers, But Supply Remains Severely Constrained
The PC industry has now reached a state of ‘desperation’ according to recent reports, as it is claimed that the DRAM supply lines are so constrained that giants like ASUS, HP, and Dell are struggling to get allocations. Companies are now directly approaching suppliers like Samsung and SK hynix, hoping to secure LTAs for DRAM, but it appears that their efforts are met with significant constraints, since supply is "failing" to keep up with the demand.
The Korean media outlet Chosun Biz has reported that DDR5 memory prices are expected to rise by up to 45% next year, following an already significant increase, which has disrupted the state of the PC industry. For manufacturers, well, they are left with limited options when it comes to combating the shortages, and for now, they have three choices. The first option is to increase the pricing of consumer products, but this move isn’t beneficial for manufacturers, as it would not only lead to a decline in buyers’ interest but also require companies to implement large-scale price hikes to purchase DRAM capacity at current contract prices.
Image Credits: SK hynix
The second option is to provide modified configurations for its products. We have already reported on how firms are looking to stick with 8 GB memory as the baseline configuration for mid-range laptops, despite the software segment recommending 16 GB as the bare minimum for such laptops. This way, manufacturers would hope to spread DRAM usage across multiple products, acting as a temporary solution to the memory shortages. Finally, the third solution being explored is delaying product launches, and we have already seen this approach being implemented.
We anticipate that changes in our market response strategy, such as postponing product launches or downsizing our premium lineup, will inevitably be necessary.
- Industry insider via ChosunBiz
Major GPU manufacturers are already looking to accelerate timelines, with CPU firms like Intel and AMD aiming to release retail products based on the DRAM allocations they have already secured. It would not be incorrect to say that the PC supply chain may enter a state of ‘famine’ when it comes to next-gen releases, which means that existing lineups might remain in retail markets for several months longer than expected. It is indeed a surprising state, but for now, there is little that can be done to solve memory shortages.
Follow Wccftech on Google to get more of our news coverage in your feeds.