Parts shortage to see rise in consumer tech prices

13 Jan 2010

For the first time in six years, the price of personal computing devices is predicted to rise due to a components shortage, Gartner says.

While the cost of semiconductor components, used in everything from PCs to laptops, phones and TVs, dropped on average by 7.8pc each year since 2000, it is expected that this cost will in fact rise by about 2.8pc in 2010.

As reported by, Ben lee, principal research analyst with Gartner, said: “In general, there is a steady drop in the cost of a PC every year. If component prices are flat or even increasing, that means they are outperforming expectations.”

He added that flat-screen monitors are expected to rise in price by 20pc over the year.

This overall rise in the price of consumer electronic goods is not just down to semiconductors being in short supply: it is said that hard drives and optical disc drives, ie, DVD and Blu-ray drives, are also suffering from an undersupply, something attributed to the global financial crisis of 2009.

The overall shortage, say analysts, will most likely lead to market consolidation amongst smaller manufactures while bigger firms, like HP and Dell, remain largely unaffected.

By Marie Boran

Photo: The cost of semiconductor components is expected to increase by about 2.8pc in 2010

Image used courtesy of Oskay via Flickr