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Framework says current memory prices are 'far beyond anything we're able to absorb'

'We recently received a cost update from our LPCAMM2 supplier that goes far beyond anything we had predicted and anything we're able to absorb.'.

Framework says current memory prices are 'far beyond anything we're able to absorb'
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TL;DR: Framework warns LPCAMM2 memory costs have surged far beyond forecasts, more than doubling versus prior inventory; the company can fulfill pre-orders but lacks the right mix of 64GB/32GB/16GB modules, has updated pre-order pricing, is absorbing some increases, and notes mixed DDR5 and storage price movements.
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Framework, the hardware maker of modular and repairable systems, has issued a new update on the 'volatile silicon market' and the current memory and storage crisis affecting consumer technology. And as expected, it's not good news, as the company's update relates specifically to LPCAMM2 memory modules and the cost of its Framework Laptop 13 Pro.

Framework says current memory prices are 'far beyond anything we're able to absorb' 1

"We've consistently held and communicated a philosophy of absorbing price increases wherever we can, making pricing predictable and ensuring that when you place a pre-order, you'll be able to get the product you ordered at the price you ordered it at," Framework's Nirav Patel writes. According to the post, Framework has been able to absorb price increases until now.

"We recently received a cost update from our LPCAMM2 supplier that goes far beyond anything we had predicted and anything we're able to absorb without placing our ability to operate at real financial risk," the post continues. "Rather than the low-to-mid double-digit percentage increase we had forecast from Q2 to Q3 on LPCAMM2 costs, we received prices that are more than double that of the prior inventory we had brought in."

It's an alarming revelation because it means that LPCAMM2 memory module pricing hasn't simply increased by a single or double-digit percentage; it has more than doubled. And with that, the company confirms that it has enough LPCAMM2 memory to cover pre-orders, but not the right mix of 64GB, 32GB, and 16GB configurations. The post continues to lay out what it has on hand and what it can cover, but also notes that pricing has been updated for pre-orders.

On the plus side for consumers, Framework is absorbing some of the costs. "Our new LPCAMM2 pricing is below the substantially higher cost we're now sourcing it at to try to mitigate some of the impact to new customers," Framework confirms. "While we have kept our original 16GB LPCAMM2 pricing for now, we anticipate we will consume the remaining inventory of modules we brought in at lower cost soon, and will then need to increase pricing for new orders."

Frequently Asked Questions

TweakBot answers common questions about this news using TweakTown's own coverage from this page and related content from our archive. Tap a question to reveal the answer, or type your own below.

Question #1

Which LPCAMM2 module capacities does Framework currently have enough inventory of to cover pre-orders?

Question #2

How has Framework changed pricing for new LPCAMM2 pre-orders and which capacity is still being sold at the original price?

Question #3

How did the recent LPCAMM2 price update compare to Framework’s original forecast for Q2 to Q3?

Question #4

What did Framework report about DDR5 48GB modules versus 16GB module pricing in the update?

Have a question not listed here? Ask below and TweakBot will answer it.

And in a surprise turn, the company's DDR5 supply chain has been able to bring down the cost of 48GB capacity modules, even as 16GB module prices have gone up. It's a similar situation on the storage front, with some drives going up in price and others coming down. Ultimately, it's a post that reflects the current volatile memory and storage situation that's affecting companies of all sizes' ability to deliver products at a specific price.

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News Source:frame.work

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Kosta is a veteran gaming journalist that cut his teeth on well-respected Aussie publications like PC PowerPlay and HYPER back when articles were printed on paper. A lifelong gamer since the 8-bit Nintendo era, it was the CD-ROM-powered 90s that cemented his love for all things games and technology. From point-and-click adventure games to RTS games with full-motion video cut-scenes and FPS titles referred to as Doom clones. Genres he still loves to this day. Kosta is also a musician, releasing dreamy electronic jams under the name Kbit.

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