Tag: prices

UK PC prices up 40 percent

old-pcs-100565082-primary.idgeUK PC prices have shot up by over 40 percent in the last year due to the weakening pound, component shortages and a shift towards higher-value products.

The average selling price for PCs among UK distributors hit £475 in April and May, up from £335 a year earlier, according to analyst Context.

That represents a 42 percent hike – significantly more than any other country in western Europe, where PC ASPs only rose by an average of 19 percent.

Context senior analyst Marie-Christine Pygott said that European prices increases were driven by currency fluctuations, price increases by vendors to offset the effects of higher component costs, and a shift to higher-value products,

However, the UK increase was well above that of Germany, at 12 percent, and France, at seven percent. This was due to Brexit-fuelled price increases last year.

Spain and Italy saw ASPs price rise by 11 and 10 percent in the quarter. Other than the UK, the highest increase was seen in Sweden and Poland, at 18 percent.

UK prices would have been lower if it had not been for the currency fluctuations, Pygott said.

“We have seen vendors trying to de-spec products to offset the rising cost of components. The price increases may be less visible to consumers, but they will still be there in terms of an indirect increase.”

A shift to higher-value products, such as gaming systems in the consumer segment, and high-end notebooks in the commercial space, has also contributed to the rise, according to Context.

In  Q4 and Q1 in the UK volume sales did go down but actually revenues rose because of higher ASPs,” she said.

“Early Q2 has been weak in terms of both volume and revenue performance, but then April had fewer trading days due to Easter. We will wait to see how June pans out to see if it offsets this.”

 

NAND flash prices to fall

memoryfutureThe price of NAND flash is flat or showing a slight fall, and prices are expected to drop significantly in 2015.

Trendforce reported that manufacturers are overstocked and that means prices will stay flat until the end of this year.

But prices are expeted to drop because sales of PCs, smartphones and tablets will fall by 10 percent in the first quarter.

These price drops will apply to the contract market rather than the spot market – the contract market is largely made up of manufacturers who commit themselves to volume amounts rather than scrabble around in the spot market.

And that means that in order to cut costs and reduce losses, the buyers of contract NAND will adopt more conservative buying strategies.

That, in turn, will mean the US and Asian manufacturers of NAND flash will keep prices down or even reduce them in the first quarter of next year.

Tesco throws down price war gauntlet to the competition

tescoTesco is vying to get customers galloping back through its doors following the horse meat scandal.

The giant is also throwing down the gauntlet to its supermarket competitors, offering its customers automatic price comparison coupons.

From today the retailer will compare its prices on branded and own-label goods with those at Asda, Morrisons and Sainsbury’s. It said its customers would receive their coupons after every buy if its prices were found to be higher than its competitors. Online customers will receive their vouchers via email.

The scheme, which is similar to Sainsbury’s Brand Match scheme, will offer customers a maximum of £10 in coupons per visit.

The company will also be going head-to-head with Asda’s “Price Guarantee” that offers to refund customers the difference, via a voucher, if an online price-comparison website does not show that their shopping is at least 10 percent cheaper than it would be.

However Tesco has stipulated that customers must buy more than 10 different products to be eligible to receive money off in its scheme.

Chris Bush, Tesco’s new UK boss, said the company was working hard to build a better Tesco and the ‘price promise’ was an important part of that.