Higher demands, disruptions from the Ukraine war, and inflation are triggering a rise in the price of computer chips, which has become a staple of any technology product.
Ultimately, this could lead to higher costs for IT buyers, who may need the chips to upgrade servers or increase hardware purchases, and rising prices for chips could force companies to take longer to replace devices.
Prior to the price hike, PCs and laptops had a three to four-year refresh cycle, but this could now extend to four to five years.
The supply chain problem began during the pandemic, when demand for computer chips outstripped supply and many technology companies were forced to redefine their annual targets.
“We are continuing to see supply chain issues that have been in place since the early days of the pandemic. We haven’t seen a full recovery yet of the major players in that space so we’re still grappling with that limited supply,” said Forrester analyst Andrew Hewitt.
To counter the continuing rise in prices, it is important that executives have a deep understanding of how technology affects business objectives and use that knowledge to prioritize what they buy.
The sources for this piece include an article in CIODIVE.
