Raspberry Pi 5 16GB model price surges again to $385

Single-board computer maker Raspberry Pi has been forced to raise the price of its flagship model once again. Amid a global RAM shortage and rising costs, the price of the Raspberry Pi 5 with 16 GB of RAM has reached $385 following another $80 increase.

This top-tier configuration originally launched at $120. Consequently, it now costs three times its initial price. The price hikes have not been limited to this single model: 16 GB versions of the Raspberry Pi Compute Module 5 have also increased by $40, now ranging between $375 and $415.

Consequences of the RAM crisis

The situation in the tech industry is directly linked to a global shortage of DRAM memory chips. According to Raspberry Pi Chief Executive Officer Eben Upton, the price increase was an inevitable decision, as alternative suppliers for 16 GB DRAM chips are practically non-existent. The issue is further compounded by shortages of other necessary electronic components, significantly increasing production costs.

Eben Upton noted that the company understands this news is unwelcome for consumers. "While this increase is inevitable, we know it is bad news for our customers. We encourage you to make sure you aren't paying for more memory than you actually need," he said.

Upton recommended that customers who do not require 16 GB of RAM choose models with lower memory capacity or opt for previous-generation Raspberry Pi devices. However, even lower-memory versions have not been immune to the crisis; for instance, the price of the 2 GB Raspberry Pi 5 also rose last month.

Mini PC competition and future outlook

At $385, the 16 GB Raspberry Pi 5 is approaching the price category of full desktop mini PCs. Traditionally, Raspberry Pi has been known for its affordability, making it an ideal tool for developers, engineers, students, and tech enthusiasts. The current price tag calls the device's main competitive advantage into question.

Despite the difficult circumstances, company leadership states that the problem is temporary. Upton emphasised that the tough situation in the memory market will eventually improve: "The situation in the memory market is difficult, but ultimately temporary. We look forward to the time when memory prices fall again and we are able to bring prices back down."

For developers and DIY technology enthusiasts, this means purchasing a Raspberry Pi 5 for high-performance projects will be quite expensive in the near term. Until the global market stabilises, users will have to consider smaller memory models or look at traditional mini PCs that often offer alternative capabilities in this price segment.