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Laptop Vendors To Hike Prices, Graphics Cards Supply In Jeopardy

Notebook brand manufacturers are planning on hiking prices for new products to reflect the increases in raw materials, ICs and transportation.

According to sources from the upstream supply chain, the price increases will only be implemented for models with new-generation software, while the prices of existing models will be unaffected.

Due to huge demand from the pandemic-driven work-from-home trend, brands are still struggling to fulfil orders.

Demand is still outstripping supply by 30 to 50 per cent, Digitimes reports.

The global supply shortage of components is also causing vendors to raise costs for the manufacturing of new notebooks.

Meanwhile, graphics card makers are expecting supply to remain constrained for the rest of 2021 due to the ongoing shortage of chips and are planning on raising prices.

With demand for graphics cards from cryptomining applications remaining on a growth track, graphic card prices have been rising almost every week, the sources claim.

It comes as MSI President Jeans Huang says he expects the PC maker’s consolidated revenue to reach the highest-ever level in the first quarter of 2021 and will stay in high gear for the second quarter.

Gigabyte Technology also saw net profits rise by 125 per cent on-year to NT$4.37 billion for 2020 and is optimistic first-quarter 2021 sales will grow sequentially.

Asustek, which has recently increased its graphics card prices by 10-20 per cent, is expected to further raise prices in the second quarter of 2021.

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