RAM and HDD prices fall again in September

RAM and HDD prices fell again in September, after consecutive drops in July and August. But this has not affected overall PC prices, according to the latest figures by Price IT, Context’s benchmarking service.

The price fall in September makes it the third consecutive month to see declines, following on from the peak prices in June, after steady growth throughout the first half of the year.

An example of how this has affected the market is the average price of RAM. A 1GB DDR3 stick cost an average of £21 in June, but this has dropped 20 percent to £17 in September. If the trend continues we may see average prices drop below the £15 mark in the months to come.

Much of this price drop has been a deliberate move by component manufacturers, due to a wide-scale adoption of newer technology and component production processes, which have cut production costs. Many manufacturers have then passed these savings onto their customers.

Weak demand for notebooks and desktops in the run up to the back-to-school season is also seen as a major contributor to the price fall, as higher demand was expected leading to higher production volumes, which the manufacturers need to sell off now at cheaper prices.

While these components are dropping in price, PriceIT has found very little change in prices for the overall PC market. This suggests that vendors selling pre-built PCs are not passing on the recent cuts to customers and therefore it might be more cost-effective to buy the parts seperately. 

“PC demand in early Q3 this year has not been quite as strong as the industry was hoping”, said Alan Tilanus, vice-president of PriceIT at Context “What this means for PC components is that in the medium term, we might be facing an oversupply as we move into Q1 2011. This would of course lead to even more significant price cuts”.