Buy Your Power Supply Now, While Prices Are Still Acceptable

Earlier 2020, the coronavirus pandemic paralyzed China's production industry for a few months. The halt in production caused a Power Supply shortage, but demand didn't let up. In fact, the industry has seen unanticipated growth in the desktop PC market as the new paradigm of widespread remote working took hold, which means demand has increased. 

We all know what happens when there's a significant gap between demand and supply: price gouging sets in. Or, as some in the industry call it, 'shortage premiums.'

In effect, the power supply situation is comparable to the mining boom from a few years ago. The supply chain becomes stressed and lead time increases as cheap units sell out, which then has the knock-on effect of driving up pricing on the more costly models, too. Basically, this is the landscape that PC builders will have to navigate for the foreseeable future. There really isn't a precedent for the disruptive impact of the pandemic, so it's anyone's guess when logistics will stabilize. 

The implications of more expensive logistics aren't just limited to the power supply market, either. Retail businesses are also feeling its effects. As an example, Banggood, a popular Chinese e-commerce website, used to offer free shipping on many products. The same products now carry a $2 to $3 shipping fee at a minimum.

Unfortunately, the negative impacts of disrupted supply chains can take months to manifest at retail, so we still aren't sure when we'll see the full impact. In other words, if you know you're going to need a power supply in the next several months, it might be a good idea to do that shopping now.

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