Thursday, March 31st 2011
Second Wave of Motherboard Price Hikes in May
Desktop motherboard prices are expected to increase industry-wide for the second time this year, in May. Earlier this year, motherboard vendors hiked prices citing escalating raw material and labor costs, by 5-10%. This time around, prices are influenced by upstream component shortages in the industry caused by the recent series of natural disasters that struck Japan, which produces high-grade electrical components for use on motherboards.
If not actual damage to manufacturing facilities, the disasters, and the resulting shutdown of nuclear power plants (which amount to a large part of Japan's power generation), is causing power shortages and reduced industrial output. Industry sources told DigiTimes that several raw materials and components are already seeing price fluctuations and prices should see a more obvious increase starting in April. To reflect the increasing costs, makers are set to raise motherboard prices in May. The sources predict retail increases in prices by 3-8% after May and companies will make adjustments every month based on costs.
Source:
DigiTimes
If not actual damage to manufacturing facilities, the disasters, and the resulting shutdown of nuclear power plants (which amount to a large part of Japan's power generation), is causing power shortages and reduced industrial output. Industry sources told DigiTimes that several raw materials and components are already seeing price fluctuations and prices should see a more obvious increase starting in April. To reflect the increasing costs, makers are set to raise motherboard prices in May. The sources predict retail increases in prices by 3-8% after May and companies will make adjustments every month based on costs.
22 Comments on Second Wave of Motherboard Price Hikes in May
I also wouldn't call Japan unstable. They have a large economy for the land resources that they have.
although there might be chance if the Chinese pushed an effective minimum wages law into action (Not happening anytime soon either :rolleyes: )
We have given tax incentive to companies to go over seas and cut our own production and jobs . Intel is still based in the USA and this is one reason why I will buy from them first ! I think Japan is UNSTABLE ( Nuke plants off line and about to melt down , Huge wall of water taking out plants people and every thing in its wake , Earth shaking and destroying buildings !) Just look at what we all have to go through NOW 90% of car parts ( were made here at one time ) Now made in Japan are no longer flowing out from there country .
Now we have to close the car making plants because there is a shortage of parts . Again once we used to make them all right here in the USA , No longer and we are feeling this in a huge way . So yes we should be looking at ways to bring this stuff back to the USA and stop outsourcing every thing we all want and enjoy just because it looks cheaper on paper ! Because now we are paying a BIG price for this .
This is just my view on things , Right or wrong I feel this way . I do not mean to offend any one in any way . If I have or do I am truly sorry .
It's one reason the UK \ USA is so fucked up but no we just jump on some one else's business and go further in to dept but thats another story i guess lol.
That's the reason companies outsource hardware... so so much cheaper.
THEY TOOK OUR JERBS!
:roll:
Have a nice system? Keep it as long as possible :wtf:
Look @ gas prices, for example: when crude barrel was @ nearly $150, "we had to raise the prices because crude barrel was so expensive" and when crude prices started falling, " but the gas you get to buy now was made from crude bought 90 days ago".
Funny how now, "crude prices went up today so we have to raise gas prices": what happened to the 90 days ago thing?
Long story short: they take every little excuse, valid or not, to hike prices but refuse to lower prices after.
It's not as necessary for people to have a new motherboard as it is gasoline to drive to work to make the money to buy the motherboard. I think this is just a standard supply and demand curve at work--- supply down, demand same, price up. Once Japan is resettled (and btw, it was more than small villages that got hit. over 100k children alone are now homeless from it www.worldnewsco.com/4421/100000-japanese-children-displaced-tsunami/ so I'd say conservative this has pushed out over a quarter million people. Not to mention the radiation that is spreading from the power plant), anywho. Once Japan is resettled or other countries pick up production, I think competition to get more sales will drive the price back down to close to pre-tsunami prices.