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tzs • yesterday at 4:33 PM • 1 reply • view on HN

The price is up because demand is way above supply (and will be for a long time because it takes years to expand supply to match the current level of demand).

If the manufacturers decided to keep the price constant that would NOT stop the price that most people pay from going up. It would just mean that the people who managed to buy from the manufacturer before the supply ran out would resell on the secondary market for a giant profit.


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dingaling • yesterday at 5:01 PM

"would resell on the secondary market for a giant profit."

But you've no evidence that that "giant profit" would be more than the increase that the suppliers would apply.

Arbitrage allows the market to find an agreeable price; a middleman arbiter with a warehouse of RAM has an incentive to agree a price with a buyer because he's stuck with that inventory if he doesn't shift it, and he has costs related to financing it.

A supplier has no such incentive, they can just jack the price up and if sales drop off they run the machines at a lower rate, or sack employees. But sales aren't going to drop off, because the baseline for demand has been lifted

Once this "RAM Crisis" is over, what reason would manufacturers have to reduce prices?

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