Mwasilow, and? Lots of businesses raise prices for a myriad of reasons. In a free market you can raise prices or lower prices for any reason whatsoever or no reason at all. A reasonably free market has a way of sorting through it all. Buy or dont buy, those are the choices.
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This comment is deeply misinformed. While I have no doubt Chinese suppliers are trying to grab a bit of extra margin, prices for semiconductors, capacitors, magnetic, copper, steel, aluminum, etc. are through the roof. I am actually surprised by only a 5-6% increase when their component cost could easily be 25-30% higher than it was a 12-18 months ago. This is not a matter of making up for lost sales. There was a whole slew of events that caused this, starting with a shutdown of manufacturing for an extended period of time, which causes part suppliers to shut down .... then as things were starting to open up, delta hit and it hit some key areas really hard like the Philippines and Malaysia key semiconductor packaging areas, and Chinese factories well open, were under restrictions that reduces their capacity, then you had the energy shortages in Shenzhen/Dongguan that was cutting factories down to as little as 1 day a week. Many many suppliers or electronics are happy if they can make their product at all, even at a higher cost. Cost negotiated and scheduled orders were cancelled by semiconductor vendors en-masse. Force majeur, or "act of God" depending on the contract language. We have had to use it with customers ourselves. We are paying 2, even 3x the price of some components on the broker market, and have requalified 2, 3 even 4 parts for a socket just so we could build. Now add in price increases on all commodities. If any supplier in China is only raising prices 5-6% they are taking a significant margin hit just to maintain sales volume.
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@audioman58 Did the KTE May DAC already have a price increase? If so, how much of an increase was it? Did you say they are planning another one on the KTE May DAC? Thanks. |
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