'This memory situation is a multi-year problem,' says Maingear CEO — Custom PC company offers up BYO RAM builds to combat shortages
CEO Wallace Santos said costs for a 32GB kit of RAM are up 394%, and up to 344% for 64GB.
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Every builder and system integrator is trying to figure out how to deal with the inflated cost of RAM. In a call with media today, Maingear CEO Wallace Santos announced BYO RAM Builds, which have customers supply the RAM for Maingear to validate into an otherwise prebuilt system.
If you pick a BYO RAM configuration, you will have to either provide a supported RAM kit that you already own for Maingear to include while it builds your PC, or order a new kit to the company for them to install. Maingear says that the upside here is that you can look for deals, attempt to time the market, or simply install RAM that you already have lying around. Maingear, in turn, offers a way to order a PC without raising prices on RAM on its own, while still validating its builds.
Santos said that his costs for a 32GB kit of RAM are up 394%, and up 344% for 64GB. He said that in over 20 years in business, he's never seen a situation like this, citing Covid, fires and floods in Taiwan, and SSD shortages. There was always, he said, a visible end to a situation.
"With this current memory situation that we're seeing right now, at first I was basically being told this was a two-to-five month situation, that lines were being ramped up, and everything would be fine," Santos told the press in a call about the new program. "As an owner of an OEM, I prepared myself, and we did what we had to do without inventory, and we prepared. But it turns out this memory situation is a multi-year problem, from what we're gathering."
Maingear isn't letting you buy an order without RAM. "To ship a fully tested, optimized system, we need memory installed before it leaves [Maingear]," a page for the program reads. There will be a consultation with the company beforehand to ensure that the RAM is compatible with the build, and if you're sending in your own RAM, Maingear will send a two-day shipping label. Santos explained that most "typical customers" don't understand how to enter or set up a BIOS, set up timings. The chances of things going wrong are pretty high," he added.
The computer itself will have Maingear's standard warranty and lifetime support, but the RAM will only be warrantied by the manufacturer.
The BYO RAM program can be applied across any build that isn't preconfigured. If it's not already built and boxed, you can opt to send in your own RAM.
And while Maingear isn't mandating this program, it sure might help the company if buyers use it. When asked if Maingear had enough RAM supply for all of its buyers without this program, Santos said plainly: "No."
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"That's part of the problem," he said. "This price increase I just provided to you, that's not even guaranteed supply." He explained that he needs to place blanket purchase orders at high prices and wait for when suppliers send "buckets of memory here and there."
"This is definitely not the norm; it's never been this way," Santos added. "That's why we're being proactive. We need to adapt without compromising our customers' trust, and that's just the reality of the business right now. Not only is the price high, but we just don't have insight into how much supply we can get, which is very concerning."
There's no specific time limit for Maingear's BYO RAM program. Santos said that he expects it will run through 2026 based on shortages, and he'll keep it going as long as necessary. He hopes that prices will level off in the next six months, though it's unclear what type of increase from typical lows we'll see. He said that it will take a year and a half for new memory production lines to ramp up, leading him to suggest that maybe things will clear up two years from now.
Other system integrators are also looking into alternatives to raising prices on customers with expensive RAM. New York-based Paradox Customs recently announced a program to skip RAM altogether if you'd rather obtain your own on the market or from old builds.
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Zaranthos The irony that it wasn't that long ago that flash and memory companies cut production because of lower demand. There are probably AI companies sitting on inventory they can't deploy because of lack of power. This crap is hilarious and sad all at the same time.Reply -
Christopher_115 Reply
I'm surprised this doesn't seem to be being reported on much:Zaranthos said:The irony that it wasn't that long ago that flash and memory companies cut production because of lower demand. There are probably AI companies sitting on inventory they can't deploy because of lack of power. This crap is hilarious and sad all at the same time.
"On October 1st OpenAI signed two simultaneous deals with Samsung and SK Hynix for 40% of the worlds DRAM supply."
Https://www.mooreslawisdead.com/post/sam-altman-s-dirty-dram-deal -
blppt Reply
Other posters on here were right, its starting to seem like one big Ponzi scheme (or something along those lines).Zaranthos said:The irony that it wasn't that long ago that flash and memory companies cut production because of lower demand. There are probably AI companies sitting on inventory they can't deploy because of lack of power. This crap is hilarious and sad all at the same time. -
Shiznizzle I will choose to remember what Micron did to me. They can change names all they want. There is not recourse from what they did to me.Reply
I am one of the lucky few who manage to get DDR5 before it got crazy so my path to AM5 is ok until somerthing goes wrong and then its back to the backup AM4 machine which i am hanging onto this time and not selling -
acadia11 While the insane data center build out is a key driver of this price hike, Samsung, sk Hynix, and micron actually state they weren’t going to increase capacity. They are going to ride this boom out much like what we saw in the GPU market and the fear is they will redefine the price scale of RAM. I literally bought 256GB of ddr5 4x64gb cl42 for $754 a week before prices started creeping up in September. I was aware prices would increase but the same kits would cost me $3000 today … didn’t see going to these levels. SSD are next on the list luckily they haven’t seen these price hikes yet. But manufacturers have no incentive to produce more Nvidia showed you can ask for insane pricing in this market.Reply -
Heat_Fan89 Reply
This is one of the reasons why I refuse to use AI in anything computer related including on all my mobile devices. These AI companies can shove it:poop:Christopher_115 said:I'm surprised this doesn't seem to be being reported on much:
"On October 1st OpenAI signed two simultaneous deals with Samsung and SK Hynix for 40% of the worlds DRAM supply."
Https://www.mooreslawisdead.com/post/sam-altman-s-dirty-dram-deal