Raspberry Pi is struggling with memory prices
The Raspi manufacturer announces price increases of 5 to 10 US dollars for some products. Rising memory prices are to blame.
(Image: Raspberry Pi Plc.)
Raspberry Pi Plc. announces price increases which, according to founder Eben Upton, are necessary due to rising production costs. The rising prices for the purchased LPDDR4 RAM are to blame. According to Upton, the RAM components now cost more than twice as much as they did in 2024, and the manufacturer has so far compensated for the additional costs with lower margins.
According to the announcement, the price adjustments will initially affect the 4- and 8-GByte versions of the Compute Module 4 and Compute Module 5, the Raspberry Pi 500 keyboard computer and the Raspberry Pi Development Kit for the Compute Module 5. Prices will increase by 5 to 10 US dollars, with Euro prices likely to rise by a similar amount.
The products with 1 and 2 GB of memory are not affected because the RAM accounts for a smaller proportion of the total costs. The manufacturer is likely to have different supply contracts for the 16 GB variants.
It is unclear what will happen to the normal Raspi 4 and Raspi 5 single-board computers. Upton is not currently mentioning them, but sooner or later they are also likely to be impacted by the supply problems.
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Memory manufacturers are producing less and less LPDDR4 RAM
Upton blames the AI hype for the price increases, as memory manufacturers are switching some production facilities to high-margin high-bandwidth memory (HBM) for AI accelerators. To make matters worse, SK Hynix, Samsung and Micron are also continuing to phase out the old LPDDR4 and DDR4 memory generation. Some systems are therefore also being converted to LPDDR5 and DDR5.
This particularly impacts the embedded market, including the Raspi manufacturer.
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