PC prices may rise, reversing six-year trendPCs are likely to cost more in 2010 due to component shortages after manufacturers cut back on capacity during the economic downturn.By Eric BangemanYour next PC may cost you a bit more than expected if you buy later this year. Market research masters Gartner say that the price of building PCs will climb this year, reversing a six-year trend, due to component scarcity. That's going to pose a bit of challenge to manufacturers who have focused on pumping out cheap netbooks during the economic downturn.The biggest driver of the likely price increase is memory. The DRAM industry is in the midst of moving from DDR2 to DDR3, which means less of each type of RAM is being produced. DDR3 spot prices are up 23 percent over the last month; with memory comprising about a tenth of a PC's overall cost, that's a significant cost for OEMs to absorb.It's not just RAM: LCD panels and hard drive prices are on the rise, with the cost of the former expected to jump by as much as 20 percent. Optical drives are also suffering from supply constraints.As a result of the recession, component manufacturers reduced capacity and delayed building additional plants. While investment is on the way back up, it takes time for new facilities to come online. In the meantime, OEMs face a dilemma: how much of the additional costs can they pass on to consumers and businesses without scaring them away from new hardware?
