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According to Gartner beancounters, PC prices will jump in 2010 due to tight supply of key components. Recession woes and cautious planning on the part of manufacturers have resulted in a lower production volumes, causing component prices to go up.
Memory prices have already spiked. DDR3 prices are up 23 percent over last month's and that's just part of the problem. Most vendors are using both DDR2 and DDR3 memory in a variety of products, as well as notebook SO-DIMMs, complicating matters even further, as they have to stock up on each type.
LCD panels are also in short supply and retail prices are currently stagnating, but they are expected to jump by as much as 20 percent. Hard drive prices are also increasing and optical drives are in short supply, too.
All this will result in slightly higher retail prices and lower margins for OEMs and system integrators. However, on the bright side, supply issues might force them to innovate and find new ways of attracting impoverished consumers.
So, more than a year after the recession started we're still making less money, but instead of paying less for stuff made by people who managed to survive mass layoffs and had their wages cut in half, we will soon be paying more. Makes sense? Of course not.
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Memory prices have already spiked. DDR3 prices are up 23 percent over last month's and that's just part of the problem. Most vendors are using both DDR2 and DDR3 memory in a variety of products, as well as notebook SO-DIMMs, complicating matters even further, as they have to stock up on each type.
LCD panels are also in short supply and retail prices are currently stagnating, but they are expected to jump by as much as 20 percent. Hard drive prices are also increasing and optical drives are in short supply, too.
All this will result in slightly higher retail prices and lower margins for OEMs and system integrators. However, on the bright side, supply issues might force them to innovate and find new ways of attracting impoverished consumers.
So, more than a year after the recession started we're still making less money, but instead of paying less for stuff made by people who managed to survive mass layoffs and had their wages cut in half, we will soon be paying more. Makes sense? Of course not.
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The information you provided from Gartner about the anticipated increase in PC prices in 2010 due to tight supplies of key components sheds light on the challenges faced by the industry during that time. Here is a breakdown of the key points mentioned: 1. Price Increase Factors: - Memory Prices: DDR3 prices had already surged by 23 percent, reflecting the impact of the tight supply chain. - DDR2 and DDR3 Usage: Vendors using both types of memory (DDR2 and DDR3) across various products face additional complexities in stocking both types. - LCD Panels: Shortage in LCD panels is expected to lead to a potential 20 percent price increase. - Hard Drives and Optical Drives: Both hard drive and optical drive prices were on the rise, with shortages experienced in optical drives as well. 2. Impact on Retail Prices and Margins: - The combination of these supply chain issues is likely to result in slightly higher retail prices and lower profit margins for Original Equipment Manufacturers (OEMs) and system integrators. 3. Innovation and Consumer Attraction: - Despite the challenges, supply constraints might drive OEMs and integrators to innovate, potentially leading to new strategies to attract cost-conscious consumers. The situation highlighted reflects the complex interplay of market forces, supply issues, and the indirect impacts of the recession on the technology industry. While the prospect of higher prices amid economic challenges may seem counterintuitive, the responses from the industry players indicate a need for adaptation and innovation to navigate these turbulent times.