PC prices are set to rise sharply in the run-up to Christmas because of a massive memory shortage.
Prices of DRam have quadrupled in the past two months after semiconductor manufacturers limited production, creating a supply shortage. A 128MB SDRam Dimm that cost $60 in July now sells for $240, which forced assemblers and retailers to add surcharges onto the price of their PCs.
System builders such as Panrix and Carrera have already added up to £60 to advertised PC prices, and retailer Time has also warned that prices are likely to rise soon.
A spokesman for Time, said: "We are still trying to assess whether this will just be a minor blip, but memory prices are rising by the day. We want to hold onto our price points for as long as possible, especially in the run-up to Christmas, but in the end we may have no choice but to raise prices."
Sven Mahon-Daly, general manager of components at Tech Data's UK arm Computer 2000, said: "We will be buying memory in very small quantities from now on, to avoid getting our fingers burned."
Jackie Barrera, workstation and server business manager at Kingston Technology, believed the DRam shortage could speed up the adoption of Rambus memory: "One of the main barriers for Rambus was its high comparative cost, but with the difference in price shrinking, many companies may wait for Rambus machines."
The memory shortage problem is being compounded by a similar dearth of Intel BX chipsets (PC Dealer, 25 August), with prices on the grey market reaching more than double normal costs.
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