What causes memory prices to rise and fall?
Memory pricing is quite volatile, with prices dramatically and rapidly swinging up and down. To understand why requires a look at how the law of supply and demand applies to memory. The memory market is a commodity market. External influences can dramatically alter its delicate balance between supply and demand. Computer sales and software sales, for example, have a direct impact on demand, especially with the release of more memory intensive software. Supply factors also contribute significantly by changeovers to next generation products, producers entering or leaving the industry, or, as we’ve seen in the past, even natural disasters. If demand increases with no change in supply, prices will generally go up. If supply increases with no change in demand, prices will generally go down. A much more detailed answer is available by clicking Understanding Memory Prices.
