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Flat screens, hard drives, optical drives and DRAM all in short supply

Component costs set to rise

The cost of manufacturing PCs is likely to rise as a global shortage of components is pushing prices up.

According to the Financial Times, the price for Dynamic RAM chips has risen by 23 per cent. These chips make up around 10 per cent of overall cost of a PC, meaning that this price rise is likely to have the biggest effect.

The main reason for the shortage of DRAM is the upgrade to third-generation DDR3 RAM chips.

However, stocks of other components are also running low, including flat-screen monitors, the cost of which is expected to increase by around 20 per cent, as well as storage memory and optical disk drives.

These rising costs may have an effect of sales of the small-form mobile PCs that enjoyed rising popularity last year, as the production costs are passed on to the consumer. The analysts that the FT talked to speculated that this would mean that PC vendors would adapt by promoting larger form PCs with a wider range of functions.

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