Second Wave of Motherboard Price Hikes in May

[btarunr]

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.

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[mtosev]

Do NOT LIKE

 

[HossHuge]

3-8% isn't that bad. However, it makes you wonder if companies use disasters like this just to raise prices. I mean from the footage that I saw it was mostly just small villages that took the brunt of the trouble.

 

[bear jesus]

Kind of sucks for brits as we had VAT upped by 2.5% then mobos up 5-10% and it will be another 3-8% probably right before bulldozer is released, so anywhere up to 20.5% price increase in less than 6 months an right around when i might want to upgrade (if bulldozer is worth it)

 

[trickson]

This is one reason why we need to start making things RIGHT HERE AT HOME ! We have outsourced just about every thing we have to Japan , China and other UNSTABLE countries ! What we need to do is get them job's and industries back and stop relying on other countries for every thing we can make right here in the USA ! This would not be an issue if we made them here and prices would be even lower for every one !

 

[kirtar]

This is one reason why we need to start making things RIGHT HERE AT HOME ! We have outsourced just about every thing we have to Japan , China and other UNSTABLE countries ! What we need to do is get them job's and industries back and stop relying on other countries for every thing we can make right here in the USA ! This would not be an issue if we made them here and prices would be even lower for every one !

I don't think you quite get why companies outsource. There's no way in hell they'd do it if it was more expensive. Moreover, the capital investment for some of necessary facilities is fairly substantial, so they wouldn't do it if they didn't think it would pay off. As for getting parts from other companies (which is probably true in several cases), fwiw Japanese products are usually very high quality.

I also wouldn't call Japan unstable. They have a large economy for the land resources that they have.

 

[Shihab]

This is one reason why we need to start making things RIGHT HERE AT HOME ! We have outsourced just about every thing we have to Japan , China and other UNSTABLE countries ! What we need to do is get them job's and industries back and stop relying on other countries for every thing we can make right here in the USA ! This would not be an issue if we made them here and prices would be even lower for every one !

I'm not an expert, but with the current state of economy you have over there ? doubt that would be happening soon..

although there might be chance if the Chinese pushed an effective minimum wages law into action (Not happening anytime soon either )

 

[kirtar]

although there might be chance if the Chinese pushed an effective minimum wages law into action (Not happening anytime soon either )

That, or if the exchange rate went up (i.e. the Chinese Yuan went up in value)

 

[trickson]

I don't think you quite get why companies outsource. There's no way in hell they'd do it if it was more expensive. Moreover, the capital investment for some of necessary facilities is fairly substantial, so they wouldn't do it if they didn't think it would pay off. As for getting parts from other companies (which is probably true in several cases), fwiw Japanese products are usually very high quality.

I also wouldn't call Japan unstable. They have a large economy for the land resources that they have.

Yeah I probably should not have made this a political thing . And I do not wish to get into it like that . But there was a time when WE here in the USA made 90% of our own things and NOW it is like 5% !
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 .

 

[AsRock]

What gets me is that they don't lower after every thing is resolved and makes me think about the government as they do the same shit.

 

[trickson]

What gets me is that they don't lower after every thing is resolved and makes me think about the government as they do the same shit.

No they do not . They use things like this as an excuse to jack up prices and pinch us for more cash , Even though there is no real reason at all for the price hick ! What they SHOULD do is LOWER the prices even further and get us back into the buying mode !

 

[pantherx12]

Considering the vast majority of stuff gets build in china I feel this is taking advantage too.

 

[trickson]

Considering the fast majority of stuff gets build in china if feel this is taking advantage too.

Yep exploit it and make billions off of it ! See this is why I hate every thing being made over seas ! We have lots of natural disasters going on here in the USA but seldom do you see us taking advantage over them .Well with every thing being made over seas we have little to nothing to really exploit any way LOL .

 

[AsRock]

Yep exploit it and make billions off of it ! See this is why I hate every thing being made over seas ! We have lots of natural disasters going on here in the USA but seldom do you see us taking advantage over them .Well with every thing being made over seas we have little to nothing to really exploit any way LOL .

I don't mind them hiking the prices but FFS lower them after every things settled down..

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.

 

[Spectrum]

This is one reason why we need to start making things RIGHT HERE AT HOME ! We have outsourced just about every thing we have to Japan , China and other UNSTABLE countries ! What we need to do is get them job's and industries back and stop relying on other countries for every thing we can make right here in the USA ! This would not be an issue if we made them here and prices would be even lower for every one !

LOL NO! prices would NOT be lower. chinese people work for 10% what you earn a month... if british or americans (british especially) were forced to make motherboards 10 hours a day for 10% of your average wage.. there would be huge strikes.

That's the reason companies outsource hardware... so so much cheaper.

 

[Spectrum]

Yep exploit it and make billions off of it ! See this is why I hate every thing being made over seas ! We have lots of natural disasters going on here in the USA but seldom do you see us taking advantage over them .Well with every thing being made over seas we have little to nothing to really exploit any way LOL .

somebody hates all their clothes and electrical devices...

 

[TheMailMan78]

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

I expect them to be higher soon. Its just a fact of life that inflation is here and is only going to get worse.

somebody hates all their clothes and electrical devices...

And when they do bring work home to the states they make damn sure its not in Union states.

 

[Thassodar]

This is one reason why we need to start making things RIGHT HERE AT HOME ! We have outsourced just about every thing we have to Japan , China and other UNSTABLE countries ! What we need to do is get them job's and industries back and stop relying on other countries for every thing we can make right here in the USA ! This would not be an issue if we made them here and prices would be even lower for every one !

I was waiting for you to yell

THEY TOOK OUR JERBS!

 

[mmaakk]

Have a sh*t system? Upgrade ASAP!

Have a nice system? Keep it as long as possible

 

[HTC]

What gets me is that they don't lower after every thing is resolved and makes me think about the government as they do the same shit.

Exactly.

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.

 

[jasper1605]

Long story short: they take every little excuse, valid or not, to hike prices but refuse to lower prices after.

That's true with gas prices because it's so heavily monopolized/relied upon by a lot of people from very few people who supply it.

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 http://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.

 

[HTC]

That's true with gas prices because it's so heavily monopolized/relied upon by a lot of people from very few people who supply it.

Actually, that's true with just about everything.

 

[shlesscamp]

this sucks but it's just the way it has to be. someone has to pay for disasters like this