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PC bill of materials creeps higher

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#1 TheSentinel


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Posted 01 April 2012 - 07:21 PM

PC bill of materials creeps higher

By Larry Dignan | March 30, 2012, 6:03am PDT

Summary: Vendors will face higher costs to make PCs throughout 2012. Apple is catching a break on NAND prices.

The cost of making a PC is moving higher as DRAM and hard drive prices remain high, according to Barclays Capital.

In a research report, Barclays analyst Ben Reitzes said that DRAM prices have increased. Hard drive prices are stable at higher levels due to the Thailand flooding last year. In 2011, the bill of materials for PCs fell every month of the year. In 2012, the bill of materials for laptops was up 1 percent year over year for January, February and March.

Reitzes? overall theme is that profit margins for PC vendors peaked at the end of 2011 and vendors will face higher costs for components such as panels. Labor costs may also increase. Overall, component costs may rise into the second half of 2012 as Intel?s Ivy Bridge processors and Windows 8 hits the market.

Detailed information about at: http://www.zdnet.com...ps-higher/72823