RAM prices skyrocket within a week

RAM prices are soaring high in the local IT market. Over the last week, the
price of fast-moving 256MB RAM has shot up close to Rs 1,000 to sell presen-tly
at Rs 2,700.

Similarly, the entry-level 128MB RAM which was sold at Rs 900 during
March-end, is being quoted Rs 1,400 upward. The price of 512MB RAM has also
increased by Rs 1,300 and currently, the stocks are in shor-tage. The sudden
sky-roc-keting of RAM prices is causing worry for the ch-annel community as they
expect sales to be affec-ted in the coming weeks.

The market is also quite unsure about the stability of RAM prices for the
next one month and they expect further inc-rease in the coming days. According
to market rep-orts, there is a 20 percent RAM shortage in the global market due
to the unavailability of certain key components that go into the manufacturing
of product.

"We do not know the real reason for the sud-den price jump. Even our
suppliers are unaware of it and the prices are expected to go upward till this
month end. The 256MB RAM may cross Rs 3,000 price point in the next few
days," said Naresh Kanted, Dire-ctor, Sagar Info System.

"The PC sales has certainly affected because of this sudden price
increase. If it is a marginal difference, we (resellers) would have adjusted in
the overall cost. But, now, we are pushed to transfer it to the customer and any
buyer would hesitate to buy, if there is a sudden increase of Rs 1,000 in the PC
cost," said Nir-mal Jain, CEO of Bo-hra Technologies.

Meanwhile, the SD-RAM which is on the verge of extinction as the industry
moved to DDR technology, is also not available in the market. Some of the
resellers say the product is phased out and stocks would not be available
hereafter.

"The shortage of components/products in the international market is
there for over two weeks. But, only now, the market is feeling the pinch.
According to our sup-pliers in Sri Lanka and Singapore, the situa-tion would
continue for next two-three weeks. However, we have enough goods of SDRAM
starting from 256MB," said an offi-cial of a leading Delhi-based RAM
distribu-tion company.

S Gopikrishna

Chennai