When it comes to chip shortages and computer prices, the “fun” has just begun. The industry is expecting price increases of at least 25 percent, and no relief is expected until 2028 at the earliest, when manufacturers can get new capacity online. Even if you’re not ready to buy, you need to start planning.
AI is proving to be the blessing and the curse for hardware pricing and availability in today’s world. We’ve been in labs that have AI computers, and they are true technological marvels that drive so many improvements in how we work at just about any job you can imagine. They also require massive amounts of high-quality chips, which manufacturers produce because they have high margins as well as high demand. It’s no wonder that one computer can cost $300,000 to $400,000.
You won’t spend that much, but mistiming a major overhaul of your technology or having to meet emergency needs will wreak havoc on your budgeting. If you were contemplating updating/upgrading your hardware sometime in the next 6 to 12 months, we recommend you move up your timetable. The longer you wait, the more likely it is that your equipment will cost more and that you may not have as many choices.
Similarly, you can expect to pay more for mobile phones and tablets. Memory accounts for around 10 to 20 percent of a smartphone’s cost. Low-margin manufacturers will need to raise their prices accordingly to skimp on upgrades. Manufacturers such as Apple and Samsung are likely better insulated because of their higher margins.
We have partnerships with some of the major computer manufacturers, but it’s hard to say when any kind of benefit from a relationship will get wiped out.
Our advice is don’t panic but start moving ahead. Call us – 973-433-6676 – or email us to evaluate your hardware and software to see what needs an upgrade now and how you can redeploy some of your current equipment. We can also look at what you might do when the law of supply and demand swings back in your favor.