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Component shortages are making PCs more expensive

By midian182 · 14 replies
Feb 17, 2017
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  1. Not only are PC sales falling, the people buying the computers are paying a lot more for them, all thanks to a shortage of components. Sadly, it's a situation that won’t be improving anytime soon.

    As reported by IDG News Service, putting an exact figure on the increase is impossible due to the huge number of PC configurations available. According to Gianfranco Lanci, corporate president and COO at Lenovo, the worldwide shortage of SSDs, DRAM, batteries, and LCDs mean the prices of laptops, desktops, and 2-in-1s are rising.

    Component shortages aren't the only thing pushing up PC prices; it’s also due to the shrinking market. With fewer people buying new machines, manufacturers want to get the highest profit margin from each sale. And the best way to do that is to raise the selling point even higher.

    Some PC makers are encouraging (forcing?) people to spend more on their devices though restricted customization options. Dell’s base model XPS 13 laptop, for example, comes with a 128GB SSD. But if you want to add more storage space, the limited configuration options mean you’ll also have to upgrade the CPU and memory as well, adding an extra $300 to the price.

    The good news for manufacturers is that consumers, especially gamers and millennials, are now willing to spend more on a new PC. At Intel’s annual investor day last week, the company revealed that operating profits had gone up the 30 percent. It seems the 7 percent chip price increase didn’t adversely affect the popularity of its Core i7s

    DRAM prices have been particularly volatile recently, jumping 30 – 40 percent during the last two quarters. With no end to the component shortage in sight, PC prices are expected to continue rising during the first and second quarters of this year.

    Permalink to story.

  2. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 8,647   +3,283

    The good news is that if you've upgraded your gaming desktop PC to the latest spec at the time within the last two years, you should be good for another two years, at least if you consider the glacial speed of Intel's processor performance increase. Heck, probably even ten years. Maybe Zen will change that... a bit... I'm not holding my breath though. Graphics cards tend to evolve a little quicker, memory performance too but 3/4 years is the norm for graphics before you really have to start thinking about an upgrade... If you want to keep on playing the latest AAA titles, not just watch a slideshow.
    Last edited: Feb 17, 2017
    Reehahs likes this.
  3. deemon

    deemon TS Addict Posts: 272   +86

    What shortages?
    Darius Moon likes this.
  4. Burty117

    Burty117 TechSpot Chancellor Posts: 3,353   +1,134

    Yeah I'm confused, how can there be a shortage if sales are dropping? Surely there should be a surplus? It should be the opposite way round?

    Lets say that's correct, and there is a shortage of components, any explanation as to why? Tsunami? Earthquake? This all sounds like bullsh*t to me from the tech companies as a way to explain why their prices have gone up rather than just saying "we can charge more, so we are!".
    Darius Moon likes this.
  5. Uncle Al

    Uncle Al TS Evangelist Posts: 4,446   +2,896

    Shortages are artificial, created by the parts mfg. in order to drive up the price and get them the gross sales profits they want, and they are not the only industry doing it. If you are a shooter you will have noticed the cost of ammo dropping severely as retailers attempt to dump their supplies in the warehouse .... after which the ammo makers will cut back in order to drive the price back up ..... wait and see; it's an old practice started in industry back before the 2nd World War .....
    p51d007, Raoul Duke and Reehahs like this.
  6. MoeJoe

    MoeJoe Banned Posts: 837   +441

    L M A O

    Fake (on allocation) News
    frostyshield likes this.
  7. Cycloid Torus

    Cycloid Torus Stone age computing. Posts: 3,620   +987

    Buy USED.
  8. Rockstarrrr

    Rockstarrrr TS Booster Posts: 97   +72

    Because same tech is being used in smartphones that just keep selling and selling, so what happened is basically all manufactures turned to that market, it gets them better profit, while in the same time made PC parts more expensive and therefore, more profit there too.
  9. Fobus

    Fobus TS Booster Posts: 99   +61

    Have manufacturers retired a lot of their capacity? How can there be shortages in the face of dropping demand? Surely any sane company would first milk out their existing products, without investing in improvements, rather than retire the product altogether?

    It seems to me like a lot of them retrofitted their manufacturing plants for smartphones and other consumer electronics. Something's missing in this article...
  10. lipe123

    lipe123 TS Evangelist Posts: 747   +263

    Shortages?! wut?!?!

    My local computer retailer has 3 brances in this city and have 100's of motherboards/cpu's/ram etc on their shelves.
    Their prices has not changed in any significant way in ages, maybe if you buy big brand pre-built garbage they have "shortages" to artificially inflate their low end hardware junk even more but in the actual industry I don't see any shortage of parts.
    Darius Moon and Reehahs like this.
  11. p51d007

    p51d007 TS Evangelist Posts: 1,709   +990

    I'm not a gamer...bought a new computer 2 years ago (first time I ever bought one without building one).
    Other than photoshop, it's just a general use computer. It should be ok for 3-4 more years.
    Only thing I've done was switch out the HDD for an SSD about 9 months ago, which was like getting
    a new computer.
  12. commanderasus

    commanderasus TS Addict Posts: 225   +98

    I went to my local computer mall which is 4 stories of nothing but computer parts, 80,000 m². No sign of any shortage of anything. If one shop is out of it the guy next door will have it. Many shops will also offer to find the part for you if you will wait a few minutes. One floor is nothing but used equipment, fully assembled computers that people trade in on the newer. You can also find lots of EOS motherboards etc for very cheap. We often see things here shortly after the big electronic shows.
  13. Kaziglubey

    Kaziglubey TS Rookie

    I want to know the name and location of this store!!!
    Compnut likes this.
  14. Darius Moon

    Darius Moon TS Member Posts: 25

    Falling computer sales and component shortage? I don't see any signs of that here.
  15. Compnut

    Compnut TS Rookie

    I second that. My wife would think I vanished if we had a store like the one you describe.
    Darius Moon likes this.

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