I have to wonder what business case makes everyone think it's a good idea to move into RAM modules... Especially when there's nothing setting them apart from the rest of the pack.
Everyone's looking for easy ways to branch out their product lines. Adding memory chips onto a DIMM form factor and mass producing a specific aluminum heatsink in different colors with different stickers is the easiest way to branch out. These business are likely stuck because: a) People aren't building new PCs since Intel's not innovating and getting to more exciting lower nm process nodes and are still being reluctant on giving more cores to consumer products, b) memory prices are high, c) graphics card prices are high, and a new generation of mainstream GPUs haven't been on the market for about 2 years now.
Before this, lots of companies were looking into branching out into all-in-one CLC, using Asetek OEM parts and tooling. And before that, it was companies branching out into SSDs. Even now, lots of non-case manufacturers (such as Asus) are looking to making PC cases because that's the next logical step.
It used to be that 10 - 20 years ago, the product many companies branched out to was case fans, but it's a lot harder to do that well, since there's a lot of crappy OEM fans out there and you don't want your brand name soiled by having it associated with bad case fans.
Additionally, it's beneficial for them to build stronger brand image and try to entice loyal customers to building PCs entirely made of parts they provide, as a one-stop-shop kind of deal. ex: A fully Asus branded PC build using Asus mobo, Asus case, etc.
These industry trends aren't new. Companies are always looking to branch out into whatever component the PC industry gets fixated on from last year. Last year we saw a lot of attention and customers looking for RGB RAM kits. All these companies took notice and a year down the pipeline you have this, a bunch of companies a bit late on the RAM trend looking to cash in on whatever market they can expand to.
The fan example is perhaps not the best. When those manufacturers branched into fans it was because the fans on the market were either too expensive to put in their products or to low quality. How does this measure up to today's situation? Colorful does not put RAM modules in almost anything and the market is already flush with plenty of RAM models at all possible price and quality points.
So the "business case" is that they will branch out with a product that might return some profits if only they manage to convince someone that their run of the mill model is worth picking from a pool of 100 run of the mill models at similar prices? And only if the RAM prices hold high?
I mean just over the past few days AT published articles on how other players like Antec are doing the same thing and my question remains unanswered. Is there anything specific that would make me choose what could very well be an obscure brand for many instead of more established players at the exact same price and performance levels? Or worse, since these guys might not have the same economy of scale?
And would these customers manage to keep the business profitable to justify its existence?
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close - Friday, June 22, 2018 - link
I have to wonder what business case makes everyone think it's a good idea to move into RAM modules... Especially when there's nothing setting them apart from the rest of the pack.JoeyJoJo123 - Friday, June 22, 2018 - link
Everyone's looking for easy ways to branch out their product lines. Adding memory chips onto a DIMM form factor and mass producing a specific aluminum heatsink in different colors with different stickers is the easiest way to branch out. These business are likely stuck because: a) People aren't building new PCs since Intel's not innovating and getting to more exciting lower nm process nodes and are still being reluctant on giving more cores to consumer products, b) memory prices are high, c) graphics card prices are high, and a new generation of mainstream GPUs haven't been on the market for about 2 years now.Before this, lots of companies were looking into branching out into all-in-one CLC, using Asetek OEM parts and tooling. And before that, it was companies branching out into SSDs. Even now, lots of non-case manufacturers (such as Asus) are looking to making PC cases because that's the next logical step.
It used to be that 10 - 20 years ago, the product many companies branched out to was case fans, but it's a lot harder to do that well, since there's a lot of crappy OEM fans out there and you don't want your brand name soiled by having it associated with bad case fans.
Additionally, it's beneficial for them to build stronger brand image and try to entice loyal customers to building PCs entirely made of parts they provide, as a one-stop-shop kind of deal. ex: A fully Asus branded PC build using Asus mobo, Asus case, etc.
These industry trends aren't new. Companies are always looking to branch out into whatever component the PC industry gets fixated on from last year. Last year we saw a lot of attention and customers looking for RGB RAM kits. All these companies took notice and a year down the pipeline you have this, a bunch of companies a bit late on the RAM trend looking to cash in on whatever market they can expand to.
LauRoman - Saturday, June 23, 2018 - link
Margins. Considering the number of ram that is not sold to popular brands, there is a lot of space still.close - Monday, June 25, 2018 - link
The fan example is perhaps not the best. When those manufacturers branched into fans it was because the fans on the market were either too expensive to put in their products or to low quality. How does this measure up to today's situation? Colorful does not put RAM modules in almost anything and the market is already flush with plenty of RAM models at all possible price and quality points.So the "business case" is that they will branch out with a product that might return some profits if only they manage to convince someone that their run of the mill model is worth picking from a pool of 100 run of the mill models at similar prices? And only if the RAM prices hold high?
I mean just over the past few days AT published articles on how other players like Antec are doing the same thing and my question remains unanswered. Is there anything specific that would make me choose what could very well be an obscure brand for many instead of more established players at the exact same price and performance levels? Or worse, since these guys might not have the same economy of scale?
And would these customers manage to keep the business profitable to justify its existence?