Notebook industry warns of possible price increase later this year

In short: Now that graphics card prices have finally started to drop, will laptops follow the same trend? Apparently not, according to a new report. In fact, in the second half of the year, the points of sale of these devices may increase due to several well-known factors.

DigiTimes Asia (through NotepadCheck) writes that Covid-19 restrictions in China and the Russian invasion of Ukraine have led to increased production costs, supply chain problems and logistical problems for laptop manufacturers. As such, they are “contemplating price increases to reflect increases in logistics and other costs in the second half of 2022.”

An increase in Covid-19 cases in Shenzhen, China in March led to all businesses, except those supplying food, fuel and other essentials, to be ordered to close or work from home. This included Apple supplier Foxconn, though it was able to resume operations a week later using a “closed-loop” management process that essentially assumes employees live at the facilities during the lockdown.

New, tougher restrictions were introduced in Shanghai and Kunshan in April, affecting manufacturers such as Apple, Dell and Tesla.

In addition, the Russian invasion of Ukraine has affected half of the world’s neon production and driven up energy prices.

All of this led supply chain sources from laptop ODMs and OEMs to warn of higher laptop prices in the second half of the year. Ironically, this came shortly after laptop makers were reportedly set to cut prices due to lower demand as much of the world returned to work and most lockdowns ended.

While laptops may soon become more expensive, graphics cards are moving in the opposite direction. We recently learned that the latest releases from Nvidia and AMD are now within 12% of their suggested retail price in Europe, and our own research shows that eBay GPU prices have again fallen by about 15% over the past four weeks.

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