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PCs Getting Expensive Again, Say Analysts

by - source: Tom's Hardware US

Start saving up those pennies for your next PC -- it could cost a little more.

When it comes to technology, whatever we buy today will soon be made obsolete by something faster--and in many cases, cheaper. But that's one of the great things about our work and hobby--prices continually fall, lowering the barrier to enter into better, faster stuff.

After six years of continually falling PC component prices, falling at an average of 7.8-percent per year, according to Gartner research, 2010 will see an estimated price rise of 2.8-percent. Yes, that could mean more expensive computers.

This estimated increase is all due to the rise in memory costs, figured to be 23-percent higher this year than compared to 2009, reported the Financial Times.

Those looking to buy a new monitor, all-in-one computer, or laptop may also suffer from rising LCD costs. Analysts expect a price increase of 20-percent of flat panel displays due to shortages. Hard drives and optical drives are also in short supply.

The shortages in computer components stem from the recession, where computer makers delayed or scaled back production and investment plans. Now that things are turning around, analysts predict that the market will see a lag until supply catches up with demand.

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FoShizzleDizzle 01/14/2010 11:53 PM
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Memory prices increased by a mere 23% you say?

It seems higher than that. The same 4GB of DDR2 I purchased last spring was $36 at the time and is, is $90 now. That's more than a 200% price difference. And DDR3 of similar capacity went from ~$70 for the same to ~$100. It's a lot higher than 23%, at least on the consumer end.

foody 01/14/2010 11:55 PM
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Funny, I just posted a comment on another article talking about something quite similar quite recently. Though, I mentioned that software's progression is far behind that of hardware's, meaning, buying a cheap computer doesn't mean you're getting a bad computer anymore. (assuming it is properly configured)

cheepstuff 01/14/2010 11:59 PM
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can I wait to buy a computer? not impossible

this looks like a short term kind of thing, it will probably reach equilibrium once again before the year is out.

stardude82 01/15/2010 12:17 PM
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TheDuke 01/15/2010 12:34 PM
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so when are memory prices projected to go down

XZaapryca 01/15/2010 12:39 PM
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Things are turning around? Really? Really? Lets not forget that the value of the dollar tanking makes imports more expensive.

matt87_50 01/15/2010 12:54 PM
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meh, they didn't burn down the factories did they? can't imagine it would lag too much. now volitility, and uncertainty about future numbers needed...

porksmuggler 01/15/2010 12:58 PM
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IC and LCD Manufacturers Price Fixing Again, Says Real Analysts

TFTFY

joshthor 01/15/2010 1:21 AM
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not suprised... about the memory part anyway last year ddr3 was just budding and ddr2 was super cheap, now ddr3 is being the norm and less ddr2 is being made so the prices increased drasticly for ddr2 and decreased slightly for ddr3

gammaraptor 01/15/2010 1:22 AM
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sceen311 01/15/2010 1:24 AM
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Shadow703793 01/15/2010 1:25 AM
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Stardude82 :
Why did RAM jump so much. Also, recent video card offerings are disappointing. Intel is obviously holding back to keep AMD around since the i5's are so lack luster. How can the i5 memory controller suck so much.


Troll much?

g00ey 01/15/2010 1:28 AM
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It's not the PCs that are getting expensive, it's the dollar that is getting worthless.

maigo 01/15/2010 1:36 AM
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wait two weeks, buy what you wanted half off

loomis86 01/15/2010 1:38 AM
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I second that...

"It's not the PCs that are getting expensive, it's the dollar that is getting worthless."

treefrog07 01/15/2010 2:22 AM
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Part of the fun in assembling computers is shopping for the best value. DDR3 prices are basically back to their prices in spring '08; the big difference is higher freqs @lower volts (latencies are higher, though). And I've had a lot if fun with the other part: learning OCing that I think I'll play with them some more before I spend more $ on a newer system.

doomtomb 01/15/2010 2:27 AM
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What's the problem here. Why are there shortages to begin with. Prices are crap now and only getting worse. I bought a 4GB Corsair Dominator 1066MHz memory kit a year ago for $70 and now the same kit is $150 on Newegg. That's bullshit. SSD prices keep going up. How can the demand be that high when it's still $400 for 120GB SSD?!

treefrog07 01/15/2010 2:55 AM
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Supplies are getting lower. MFrs. are reducing production to charge more for their prods. Scarcity = higher prices.

falchard 01/15/2010 2:55 AM
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Most of the price increase on memory is the result of inflation from central bankers using bad methods to curb a recession. Only a little has to do with shortages.

porksmuggler 01/15/2010 2:57 AM
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doomtomb :
SSD prices keep going up. How can the demand be that high when it's still $400 for 120GB SSD?!



The demands not high, the tech sites have just hyped the crap to a new level. The manufacturers need to cover R&D, and the same people who bought in early, are the same ones buying the "new and improved" TRIM SSD lines now. The drives are nowhere near the performance and capacity to justify the price relative to other components. Wait it out, they're still trying to sell the SSDs as new tech.

grillz9909 01/15/2010 3:45 AM
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g00ey :
It's not the PCs that are getting expensive, it's the dollar that is getting worthless.


I agree, but when has green printed paper ever really been 'worth' anything?

San Pedro 01/15/2010 3:48 AM
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g00ey :
It's not the PCs that are getting expensive, it's the dollar that is getting worthless.



Prices are rising everywhere, not just the US. Even here in Japan, where the yen is really strong, memory has risen in price quite a bit.

Shadow703793 01/15/2010 4:17 AM
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g00ey :
It's not the PCs that are getting expensive, it's the dollar that is getting worthless.


Yu hit the nail on the head. + over 9000.

liquidsnake718 01/15/2010 5:05 AM
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well im happy with my current build so i dont have to spend more just to "keep up" with the best...true pc builders and fanatics know when is the best time to build and at what time to incorporate their add ons and upgrades.... I will wait for some prices to decrease and build....

buzznut 01/15/2010 5:50 AM
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"Prices are rising everywhere, not just the US. Even here in Japan, where the yen is really strong, memory has risen in price quite a bit."

Great feedback! That shows that supply really is the factor here, or at least that the US dollar is not to blame (anymore than it is to blame for everything else.)
there may be something to the price fixing idea, we all know that goes on all the time in the PC industry. We only hear about it when a company has to admit wrongdoing because of a dispute settlement. How often do you suppose price fixing goes on unreported? I'd hazard a guess and say a whole boatload.

buzznut 01/15/2010 5:55 AM
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I also remember buying 4 gigs last year for 40 bucks, I just bought the same OCZ reaper kit for $100. Although I did get a $30 MIR, I noticed most ddr2 1066 and 800 kits going for $95-100, and the same for 4 gigs DDR3. Id say for most of us, that's a 100% increase.

cewhidx 01/15/2010 6:41 AM
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buzznut :
I also remember buying 4 gigs last year for 40 bucks, I just bought the same OCZ reaper kit for $100. Although I did get a $30 MIR, I noticed most ddr2 1066 and 800 kits going for $95-100, and the same for 4 gigs DDR3. Id say for most of us, that's a 100% increase.



Same here. I bought the same OCZ Reaper 1066 4GB kit last March for $36, now it's $109 "if" it's even in stock anymore...

paxiam 01/15/2010 7:24 AM
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I remember paying $270 for 4Mb ram in 1992!

tlmck 01/15/2010 7:42 AM
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In addition to hardware, I noticed a $50 price jump on PC's with Windows 7. Some stores even had the same model with Vista sitting right next to the new machines. The Vista machines were not reduced in price. This was most evident in the $299 laptops.

2shea 01/15/2010 8:35 AM
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Here in europe the euro hasnt changed much but prices have gone up for memory as well, still my well over a year old pc with upper mainstream components can play almost any game on 1680 x 1050. So that remark that you dont have to buy a good pc goes quite some time now :)
still I agree with the article, prices will go up again, because the economy will rise and with that prices for luxury will go up.


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