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Remember when "Building Your Own" Made Financial Sense ?

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Mar 18, 2015
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Yes, this is true of most things you find on big box store shelves. But, if you choose a custom builder, things change.

Since the post has been made, more and more companies have been speaking out, some have decided to close up shop. NZXT's Jim Carlton said ""If it's a $2,000 purchase on 25 percent tariffs, it's going to be a $2,500 purchase\, .... So we are very concerned with the direction of where this is going,,,"I don't have a 10 percent [profit] margin I can just throw away and absorb the tariffs," he added. "And certainly no one has a margin for 25 percent."

Cyberpower's CEO Eric Cheung said "In our company's 20-year history, the proposed Section 301 Tariff Action is the greatest threat to our company's survivability to ever arise," Cyberpower said in a public letter to US trade authorities. ... As a small business, we are already facing tremendous pressure from large global manufacturers like HP/Dell/Apple, which has a greater capacity to absorb these increased costs from the new tariffs".

So what that essentially means is .... the option of getting a pre-built w/a PSU of your choosing is getting harder. How many are gong to pay that premium when getting a box built on US by US labor is $2500 and the tariff free one in BestBuy with the same primary components is $2000 ?

MSI, Asus, Gigabyte, Intel etc are moving manufacturing to Taiwan and other places which doesn't help anything here. Back in 2010 "Other" manufacturers were shipping 36 million units a year. Te big boys were doing less than half that each ...HP (36), Acer (12), Dell (10), Lenovo (8), Asus (4), Toshiba (4). In 2018 "Others" were down to 16 million, HP and lenovo (14), Dell (10) and the rest ... Acer, Asus, and Apple (4)... That decline can be traced to many reasons, part of it being the 'build your own" has gotten much easier, but PC builders will not be able to compete with a 30% penalty for building things here.

I haven't heard much on the topic since they agreed to a 90 day extension which I guess keeps the tariff set at 10% till end of March. That's the good news, ... newgg just started charging tax in my state so I'm up 18.62% for parts since last year.... which was never a big deal as when taxes were paid I could decuct them ... but for 2018, that deduction also went bye bye. The logic of the tariifs on a whole is arguable and not the subject of this discussion ... but the levying of the tariiff on parts ONLY is just counter productive. I expect they can weather the 10% for a short time, but if companies that build here in US will suffer a 25% penalty for using US labor, to the US business community and the US labor force in this tech sector is in serious trouble. Will put a big hurt on our economy in "factory" towns like City of Industry and more families will lose a wage earner.
 
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