Every single computer in this world is built on multiple components that each serve an essential purpose. While some may believe this is problematic, it’s actually incredibly advantageous for us.
This is because you can fix most problems on your computer by simply replacing specific parts instead of replacing the entire PC. This means that your overall expenses are significantly reduced.
However, it’s 2022, and computer parts are ridiculously expensive. It almost feels like buying a new computer would be cheaper than replacing multiple parts on your existing computer. I recently had to replace my hard disk and was astonished at the steep prices.
If you are wondering why PC parts are priced so high, grab a cup of coffee and read this article. Once you finish reading this, you will also have an idea of how to save money on PC parts.
Why Is It So Expensive to Get Computer Parts Right Now?
It is so expensive and impossible to get computer parts because of various reasons, particularly related to its production. For example, there is a shortage of labor and microchips. However, the increasing demand for specific PC components also leads to increased prices.
It’s not possible to list all of the reasons in one article, but you can find the major ones below.
Here are the reasons why it is so expensive and impossible to get computer parts:
1. Increasingly High Demand
The demand for computers was always increasing pretty steadily, but during the recent pandemic, the demand skyrocketed during the quarantine period.
Before the introduction of COVID-19, consumers focused on purchasing mobile phones, but PC sales increased by 14.8 percent from 2020 to the end of 2021. Research suggests that this is the most significant change since the year 2012.
This is because more and more people started investing in computer parts like RAM and graphics cards to upgrade their entertainment or gaming experience at home or to have a smoother workflow.
Apart from this, there has been a drastic rise in the use of cryptocurrencies, like Ethereum, in the past few years, which requires the use of high-end graphics cards.
2. The COVID-19 Pandemic
After the introduction of a nationwide lockdown in March of 2020 around the globe, millions of employees and staff had no choice but to stay and work from home.
That situation forced people to see technology in a new light. Computers became their primary source of communication, a means to earn money and the only form of entertainment. This led to a steep increase in demand, which eventually led to a rise in prices.
Moreover, due to the lockdown, multiple production facilities had no choice but to shut down, unable to meet the increasing demands due to employee shortage.
This also led to multiple supply chain disruptions, and many factories that relied on imports from other countries had to close down.
3. Rise of Data Mining
Data Mining started out in the 90s and has been steadily increasing over the years. However, it’s now at a point where data centers are overflowing.
Data Mining is the process of collecting, analyzing and utilizing large datasets in order to influence business decisions. These datasets can be found in data centers since all the information that passes through the internet travels through this.
Since the amount of data being stored in data centers is increasing rapidly, the demand for data centers is high due to more people relying on the internet for work and school.
Following that, there is also an increase in demand for servers since this is where all the data are stored and processed. The servers here use a large scale of computer components, although these components are more or less the same type as other devices.
A similar process is Crypto Mining, where people use computers to solve complicated mathematical computations that are used to validate transactions in the blockchain process.
Bitcoin is a famous example of crypto, and its rise in value after the pandemic led to more users joining the Crypto Mining community. As a result, this led to increased demand for high-performance GPUs since Crypto Mining requires high computing power.
4. Shortage of Available Chips
This one is directly caused due to the pandemic. After the lockdowns were initiated, several semiconductor factories had to close down due to limited labor, which directly impacted production.
Semiconductors are integrated circuits or microchips that are doped using pure elements to create impurities. Semiconductors are used in almost all electrical appliances, from your fridge to your electric toothbrush.
Since multiple semiconductor factories have closed down, it’s not possible to meet the high demands.
5. Scalping
This issue existed before the pandemic, although it’s a much bigger problem now after the COVID-19 pandemic.
Scalping occurs when some third-party business or individual purchases a specific product at a low price and then sells it at a higher price to make a profit. Scalpers typically purchase highly popular computer components in bulk and then sell through sites like eBay for large profits.
Apart from this, there also exists a fair number of unethical scalpers who reserve items in stock intentionally so that they can distribute the products at a slower pace. This helps them to sell them at a steeper price which doubles their profits.
However, the majority of scalpers are now heading in a different direction after it became possible to use bots to purchase items in stock to resell them at inflated prices immediately.
Their main targets are typically gaming equipment like consoles, graphics cards and chips. If you come across a scalper, I suggest avoiding them to help make them run out of business, eventually bringing prices down.
When Will PC Parts Prices Drop?
While it’s not possible to make an accurate prediction of when you can expect a price reduction, our research suggests that this price hike may continue to the following year. However, by mid-2023, the order backlogs are expected to be filled.
This projection assumes that the supply of semiconductors will return to a normal state and that all its demands will be met.
However, the prices may drop earlier if there is an occurrence of a crypto bear market.
A bear market is a situation where there is a steady downfall of crypto prices that eventually leads to a complete declination of the total value of the crypto market. This will result in a stable demand and supply for computer components like GPU.
An important point to keep in mind is that this is one of the few possibilities from the recent trends. Another possibility is that the current prices will become the new standard.
Despite the ridiculous boost in prices of almost all computer parts, the demand for technology is still increasing, and computer part manufacturers are enjoying stable profits. In addition, there is no possibility of new competitors challenging this market.
Due to this lack of competition, manufacturers have complete freedom to set prices as they see fit without anything to challenge them.
How To Save Money on Computer Parts
Since there is no possibility of a price drop in the near future, your only choice is to save as much money as you can if you urgently need to replace a computer part.
The first step is to avoid the biggest and best parts with steep prices unless you need them. For instance, an Intel Core i9-12900K is the best processor to date, but it costs around $600.
However, you can go for an Intel Core i5-12400 CPU which is only $200 while also offering enough performance for your day-to-day tasks and some advanced applications. Note that this depends entirely on how you plan to use the component.
If you are a heavy gamer or need to do highly CPU-intensive tasks on a daily basis, you should stick to the Core i9. This is the sort of thinking you need to do to decide where to spend your money on.
Another critical step to take is to make sure you are purchasing a part that needs to be replaced. If you can survive without the replacement, I suggest avoiding it altogether.
I also recommend getting an IT specialist to look over your issue to ensure your problem gets fixed after replacing that particular part.
When purchasing items like CPU coolers or GPUs, people tend to look for attractiveness, like RGB lighting, but those end up costing more while providing lower performance. Instead, look for something that isn’t flashy but provides a satisfying experience.
The final tip is to avoid the impulse of purchasing a product as soon as you lay your eyes on one. I was also a victim of this recently but managed to keep it in control due to the recent price increase.
Instead, you should wander various shops looking for different products in the same category. This way, you will be able to explore more choices and avoid feeling regretful after the purchase.
You should also keep an eye out for sales or discounts from large malls and stores and subscribe to any newsletters if available. This way, you always have an opportunity to reduce costs.
Final Thoughts
The prices of several computer components have been increasing steadily even before the pandemic, but things have taken a different turn after that. Among the various reasons I talked about in the first section, the main cause was the COVID-19 pandemic.
However, you can still purchase good quality PC components on a budget if you read the second section, where I discussed some things that can help you make wiser purchase decisions.
After using my PC for five years, the only component I needed to replace was my keyboard and GPU. What about you? Which component do you plan to replace? Let me know in the comments.
