Like businesses around the world, we are starting to feel the effects of pandemic-related product shortages.
Soaring shipping costs, pandemic shopping sprees and an ongoing global computer chip shortage, dubbed ‘Chipageddon’, are impacting our ability to order and receive IT hardware.
Photo by Cameron Venti on Unsplash
What is Chipageddon?
Millions of products - cars, washing machines, smartphones, and more - rely on computer chips, also known as semiconductors.
At the moment, the demand for computer chips has outstripped supply for three main reasons:
Demand for consumer electronics (TV’s, computers) has surged, due to Covid-19 lockdowns
Covid-19 shut down factories in Asia, where a lot of computer chips are made
Freak weather events also shut down factories in Texas, America (= snowstorm) and across Taiwan (= worst drought in more than half a century).
Fun Facts
Taiwan produces around 60 to 70 percent of the world's semi-conductor chips
It takes 8,000 litres of water to produce a single chip-laden silicone wafer
Source: https://www.abc.net.au/news/2021-05-07/what-does-chipageddon-have-to-do-with-climate-change/13327926
What IT stock delays are we observing?
This is what we are observing at the moment:
Extensive delays on peripherals – screens, docks, accessories, headphones etc - 3-6 weeks
Some delays on laptops and PCs – 1-2 weeks
Standard laptops and PCs – in stock
Price trends – Prices have increased between 10-20% over the past 6 months
How long will the stock shortages last?
Some pundits are predicting the microchip shortage will last for the remainder or the year, others are more pessimistic and believe we will be looking at "a few years of slowdown”.
This article in the New York Times (The World Is Still Short of Everything. Get Used to It), also paints a pessimistic view of global shipping container shortages, which are also contributing to supply chain disruptions:
“The Great Supply Chain Disruption is a central element of the extraordinary uncertainty that continues to frame economic prospects worldwide. If the shortages persist well into next year, that could advance rising prices on a range of commodities. As central banks from the United States to Australia debate the appropriate level of concern about inflation, they must consider a question none can answer with full confidence: Are the shortages and delays merely temporary mishaps accompanying the resumption of business, or something more insidious that could last well into next year?”
What does this mean for prices?
Obviously, we cannot predict how long supply chain disruptions will last, and to what extent disruptions will impact the price of IT products.
However, if you have an IT Project you would like to complete by Christmas, we do suggest ordering stock as soon as possible to avoid IT hardware stock delays and price hikes.
Get a quote today
Please contact Digit IT on 07 4637 9033 to discuss your IT Project requirements or contact us for a non-obligation quote: sales@digitit.com.au