Exploding RAM Costs Slash Motherboard Sales; Will CPUs Be Affected? Technologies

Exploding RAM Costs Slash Motherboard Sales; Will CPUs Be Affected?

The soaring prices of RAM have not just impacted memory sales but have rippled through the entire PC hardware market. As DRAM costs shoot up, many consumers are holding off on purchasing new DDR5 RAM kits or modules, leading to delays in building new PCs or upgrading existing ones. This trend is significantly affecting motherboard sales, as recent reports highlight the extent of the impact.

Major Decline in Motherboard Sales

Reports suggest that leading motherboard manufacturers such as MSI, GIGABYTE, and ASUS are experiencing a dramatic 40-50% drop in sales compared to the same period last year. Typically, this time of year sees a boost in sales due to festive discounts, but escalating DRAM prices since October have disrupted the market. DDR5 RAM kits and modules are now selling for two to four times their previous prices. Consequently, motherboard vendors are considering revising their sales strategies for the upcoming months.

Transition to DDR5 Platforms

The transition to DDR5 platforms is a major driver of the current market situation. With the latest AMD and Intel processors now fully supporting DDR5, DDR4 motherboards are becoming less common. Earlier this year, as DDR5 prices stabilized, many users switched to the latest AM5 and LGA 1851 platforms. However, those looking to enhance their memory capacity are finding it challenging. Many consumers wanting to build new PCs are forced to postpone or compromise with older hardware.

This decline in motherboard sales is also expected to affect CPU sales, likely resulting in lower numbers than the previous year. The situation might continue for some time, and while bundling DDR5 RAM kits with motherboards might seem beneficial, it does little for those who already own a motherboard.

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