Since last year we have seen an increase in prices of graphics cards due to the mining boom and it seems that now prices are going back down again but that might not be the case for long. PC hardware components are going to get expensive again and this time we are not just talking about graphics cards but motherboards as well.
While we are on the topic of PC hardware that has become expensive, RAM has more than doubled in price in the past couple of months and there is an investigation underway and it is possible that memory manufacturers have been limiting supplies in order to get the prices up and make huge profits. The numbers reveal that these companies are making record revenues and record stock highs. According to Nvidia:
All new cell phones coming out by Apple and Samsung (and others) last year started using the same memory as graphics cards. Apple and Samsung are willing to pay more for this memory to make sure they get it first and all of it that they need. This has created a shortage of memory for the much smaller companies like MSI, Gigabyte, Asus, and EVGA to make graphics cards.
Prices for silicon wafer have also been expected to increase by around 20% which will be reflected in the prices of PC hardware components as well. If all that was not enough we are now getting news that Aluminum electrolytic capacitors will also be getting more expensive and will add the cost of making PC hardware components.
Aihua, the largest supplier of aluminum electrolytic capacitors in China, has announced an 8% increase in price and other manufacturers will also be following in the footsteps. You can expect to see an increase of 10% overall. Why is this happening you ask? Well, this is one of the industries that have been hit hard as China is now trying to be environmentally friendly. Such manufacturers often have a hard time complying with green laws and are forced to close down.
With players in the market closing down, the bigger fish now see that the demand in the market is the same but the number of supplies is dropping. This is allowing them to charge more for the same product and hence the increase in price that we see. It will be interesting to see how intensely this will affect the pricing of PC hardware components.
Let us know what you think about PC hardware components getting expensive and whether or not you are comfortable with paying more.