Acer price rise signals end of low cost netbooks

PC prices on the rise

Retail prices for PCs could be set to rise as PC manufacturers and vendors encounter rising component costs, following reports from several Asian manufacturers that component supplies were around 20 per cent short of demand.

According to the Financial Times, Acer recently raised its prices for the first time in five years due to rising prices of DRAM chips, which have doubled over the course of the last year, but insists that consumer demand remains strong.

The FT also speculates that with the margins of many vendors already wafer thin – nine per cent for HP, three per cent for Acer and four per cent for Dell – the days of ultra low-cost netbooks could be coming to an end.

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