29th May 2008

So computer and part prices may be on the rise

posted by Eric C. in Uncategorized |

Apparently computers and computer parts are too cheap. DDR2 memory bottomed out a while ago and at some points was actually being sold under cost. Prices have risen slightly over the last month or two and is continuing upward. Taiwan Semiconductor Manufacturing Company (TSMC), the largest contract chip foundry making chips for Via, Nvidia, and AMD (ATI graphics cores) may be increasing their prices. Lite-On IT and Quanta Storage, the top optical drive manufacturers in Taiwan are hoping to increase prices by 3-10% depending on the type of drive. According to Digitimes, component costs have risen to levels outside of pricing tolerances set by both companies. PCB board makers are raising prices to their customers for the same reason, one of the key components in PCBs has increase in price 7% through the second quarter and they are looking to pass that cost on. OEM quotes for motherboards may be on the rise because of slow sales. and HP, Lenovo, and Acer have agreed (with Dell still negociating) to higher OEM prices for notebook.

At this point half of the cost increases are either still being mulled over or are still being negotiated, so it’s not clear if prices to end users will increase and if so how much.

I definitely don’t miss the days of $150 “budget” motherboards back in the day and the $120 price for a 1GB DDR2-667 stick from 8-12 months ago but it had to happen sooner or later. You can only make the same thing cheaper for so long before you have to stop lowering or increase the price to say in business.  Also, I’d much rather pay a few bucks more than end up with total junk.

There is currently one response to “So computer and part prices may be on the rise”

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  1. 1 On February 27th, 2012, qizhenkim said:

    Don’t should not getting cheaper?price

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