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.
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.