PCs are going to cost 10 percent more

IBM PCThis year we’ll see the price of PCs rise by as much as 10 percent because of the effects of the US dollar’s rise against other currencies.

That is particularly true in Europe and Japan, according to Gartner research director Ranjit Atwal. “PC vendors selling to Europe and Japan, where local currencies have fallen up to 20 percent since the start of 2015, have little choice than to raise prices to preserve profits.”

Vendors margins hit by the currency fluctuation will not only raise prices, but will sell PCs with less features to keep costs down.

In the non commercial market, people will buy down the price range.

And in the commercial sector, big business will divert funds from the PC budget to spend on software and services. Atwal said that large organisations will cut their PC buys by 20 percent due to price rises, while SMEs will buy PCs aimed at the common people rather than the commercial world.

All of this seems to spell doom and gloom for the entire PC supply chain worldwide.