Tuesday, January 12, 2010

Cost of Computer Components Headed Higher

Is the downward spiral in the price of computers about to end?
Since mid-December, spot prices for DDR3s (Third generation chips) have risen 23% to $3.01, according to Drame­Xchange. The chip price generally translates into about 10% of a computers overall price.
Further, the cost of flat screen monitors are also expected to climb, by about 20%, according to Ben Lee of Gartner Group.
The price increases are part of the aftermath of the financial crisis, which led many component makers to delay investment plans. With the government directing funds to Goldman Sachs, and the like, this is what the country has to face, less funds available for capital investments, meaning less product produced that translates into higher prices and a lower standard of living.

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