Heard in the Channel: Hardware Prices on the Rise, Buyers Advised to Purchase Now

Aug. 18, 2014
According to IBISWorld, hardware prices for programmable logic controllers, graphics and accelerator cards, network switches, and intercom systems are projected to increase between now and 2017; plus news from RFMW, ECIA, Electronica, and more. 

Despite desktop computer prices falling nearly 24% in the past three years, some computer hardware prices are expected to rise through 2017. According to a new report from IBISWorld, programmable logic controllers, graphics and accelerator cards, network switches, and intercom systems will increase in price in the next three years. Although hardware production costs have decreased due to a 1.7% average annual dip in semiconductor prices and new technology, IBISWorld recommends that buyers consider acquiring related products as early as possible to avoid future price increases.

Programmable logic controllers (PLC) are computers that control and automate industrial processes or machines. The high upfront capital requirements and competition is expected to slow supplier entry into the market. In addition to demand growing, PLC prices will grow at an average of 4.2% per year between now and 2017. The report advises buyers to purchase as early as possible and bundle for a potential discount. Graphics and video accelerator cards (graphic cards) are attachments used to process high-definition images and videos on personal computers. Due to high demand, graphic card prices are projected to grow at an annualized rate of 2.6% through 2017. Although it is hard to avoid price growth in a market with such high demand, IBISWorld recommends buyers make purchases early.

Network switches manage the correspondence between computers, servers, printers, and other devices on a computer network. Network switch prices are projected to rise an average of 2.7% per year in the next three years, the researcher says. The report offers advice for buyers to bundle related goods, seek less expensive technologies, and look to smaller players in the market. Intercom systems are expected to steadily increase, the report shows, especially in nonresidential construction—which is projected to rise 6.3% per year. Increased research and development (R&D) costs and demand will push prices up at an annualized rate of 2.7% through 2017. The report recommends early attainment and long-term contracts to combat rising prices. Despite price deflation for most computer products, hardware prices continue to rise. Buying sooner than later and exploring opportunities for bundling related products and services can help alleviate rising costs.

In other industry news:

  • RFMW, Ltd. announced it will provide design and sales support for Delta Electronics RF Connectors and Adapters. Delta Electronics has more than 550 parts that are military M39012 and UG designated.
  • The USA Science & Engineering Festival offers summer interactive presentations for students interested in pursuing careers in science, technology, engineering, and mathematics. Through its YouTube Channel, students can explore everything from National Geographic’s presentations to favorite science authors discovering space.
  • The ECIA Foundation was honored at the FIRST Supplier Summit. FIRST (For Inspiration and Recognition of Science and Technology) holds the FIRST Robotics Competition and aims to inspire students interested in STEM programming.
  • Electronica, a trade fair for Electronic Components, Systems, and Applications, is turning 50 this year. The show will be held from November 11-14 in Munich, Germany. Key topics this year will include: automotive, embedded systems, lighting, and medical electronics—with the over-arching themes of security and energy efficiency.


PCB Technology Day
September 16, 2014
Worcester, England

MIT Technology Review EmTech
September 23-25, 2014
Cambridge, MA

2014 ECIA Executive Conference
October 26-28, 2014
Rosemont, IL

November 11-14, 2014
Munich, Germany

2014 NAED Eastern Region Conference
November 10-12, 2014
Marco Island, FL

Avoidance and Visual Indicators of Counterfeit Parts for Management
November 12, 2014
Online Training Course Sponsored by IDEA

ISM Indirect Procurement Conference
December 3-4, 2014
Phoenix, AZ

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