Computer Prices may go up a lot in 2025
A perfect storm is brewing in 2025 which may cause the price of computers and other electronic devices to increase significantly. Three main issues are driving the potential increase in cost.
In October of 2025, Microsoft will no longer support the Windows 10 operating system so many companies are in the process of upgrading those older PCs and laptops with new systems running the current Microsoft operating system, Windows 11. Demand for new systems is already increasing as 2024 comes to a close, and we can expect that to continue through next year.
Another factor that could increase demand and tighten the supply of PCs and laptops is the anticipated refresh cycle of the systems purchased during the first couple of years of the COVID-19 pandemic. Typically, companies replace their computers every three to four years as newer and more capable technology comes into the marketplace. That refresh cycle will increase the strain on the supply chain and increase prices.
The biggest potential driver of increasing prices is the tariffs on imported goods that the incoming administration is promising to impose. The proposed tariffs range from 10% across the board for all imported goods to up to 60% with imports from China.
According to the Consumer Technology Association, China accounted for 87% of US video game console imports, 78% of smartphone imports, and 79% of laptop and tablet imports to the U.S. in 2023
Under Trump’s tariffs, the average price of laptops and tablets could skyrocket 45%, jumping an additional $200-$350 from their current prices, the CTA report found.
Similarly, smartphones would see a more than 25% increase in consumer price, surging more than $200 from their average October price, the report said, which also drew on trade and tariff data from the World Integrated Trade Solution, the US Census Bureau, and the Global Trade Analysis Project.
The convergence of the impending Windows 10 end of life, the need to refresh devices acquired during the COVID-19 pandemic, and the tariffs on new imports has created a perfect storm driving up prices and squeezing supply. Consider not waiting until next year, instead accelerating the purchase of new systems while they are still available and more affordable.
