RAM prices are forcing companies to choose higher prices, worse specs, or both
Soaring RAM and flash memory prices are forcing electronics makers into hard trade-offs: raise retail prices, cut specs like RAM and storage, or quietly lower build quality while keeping prices flat. Commenters debate whether this amounts to “shrinkflation” or simply supply-and-demand shock amplified by AI data-center demand, with concrete examples from laptops, phones, consoles, and even hosting services. The thread also explores why companies like Apple can better absorb these shocks through scale, contracts, and margins, while smaller or commodity PC vendors and new hardware startups struggle or delay products entirely.
Globalization, Labor, and Declining Product Quality
- Some argue the West exhausted the “cheap labor” model; as emerging economies catch up, rich countries face worse products, longer work, and weaker services.
- Others reject this as fatalism, saying there’s no obligation to accept worse conditions just because of past choices.
- Debate over global outcomes: one side notes rising global living standards and poverty reduction; another stresses persistent between-country inequality and environmental damage.
- View that capital continually relocates to cheaper labor and new industries, repeatedly recreating worker unrest and deindustrialization cycles.
Shrinkflation vs Supply Shocks and “Enshittification”
- Multiple definitions of shrinkflation:
- Narrow: same price, reduced quantity.
- Broader: same price, reduced quantity and/or quality.
- Some insist RAM/SSD cost spikes are supply-chain/demand shocks, not shrinkflation per se; others say lower RAM/storage at same price is exactly shrinkflation.
- Distinction raised between:
- Shrinkflation (less for same price).
- “Enshittification” (degrading products/services, lock-in, ads, dark patterns).
RAM/SSD Price Spike and Market Impact
- Reported RAM/SSD prices have increased several-fold in a year; GPUs and consoles perceived as unusually expensive or not getting mid-cycle “Super” refreshes.
- Examples given: laptops and phones with lower RAM or storage than prior models, or higher prices for similar specs.
- Some companies report concrete business impact: minimum account sizes doubled, or entire product launches delayed because sufficient memory can’t be sourced “at any price.”
Apple vs PC OEMs and Supply Chain Strategy
- Discussion on why Apple seems less affected:
- Huge scale (especially phones), deep pockets, and long-term contracts.
- Willingness to prioritize price stability and absorb margin hits.
- Control over silicon and more of the stack, avoiding some vendor margins.
- PC vendors like Lenovo/Dell:
- Operate in commoditized Windows market with weaker pricing power.
- Use sprawling product lines and segmentation (e.g., “small business” vs “enterprise”) as marketing and price-discrimination tools; some see this as helpful targeting, others as confusing “badge engineering.”
Software Bloat, Consumer Needs, and RAM Demand
- Some argue hardware demands are inflated by bloated software, AI features, ad tech, and heavy browsers; they claim most users were fine with 2010-era capabilities.
- Counterpoint: non-technical users accumulate malware, security tools, and junk, making them genuinely need more RAM than power users on clean systems.
Inflation, Wages, and Perceptions
- Debate over whether salaries like $100k are still “good” given cost of living.
- Emphasis from several commenters that averages vs medians and local COL matter, and many people misunderstand inflation’s long-term effects.
- US wealth inequality cited as extremely skewed; others note that inequality can rise even while most people’s absolute condition improves.