Artificial Intelligence (AI) is now having an impact on suppliers of internet routers, internet gateways and set-top boxes (STBs). According to a Counterpoint Research report, the price of RAM modules to produce these three devices has increased by more than 600% in a year. Prices are expected to continue to increase at least until June this year.
As a result, memory, which previously contributed 3% of the material cost, has increased sharply to 20%. Researchers expect it to affect customers, first of all, internet service providers will no longer offer free installation and STB promotions to customers as they do now. It will not increase the cost of breaking into broadband internet services but only the initial cost that customers have to pay.
The cost of RAM is increasing not because it is needed by data centers. On the contrary, because the DDR4 RAM used is old while manufacturers are now giving priority to the latest modules that data centers need. Limited supply contributes to a price increase that is higher than other types of RAM.
