The Neverending Chip Shortage

It's August 2026 and the tech industry is still hurting from a chip shortage that is not slated to end any time soon. It's due to a mix of issues from manufacturing pivots due to AI and ongoing geopolitical tensions. While the demand for electronics like laptops and mobile phones hasn't changed much, availability has.

Most semiconductor manufacturing is concentrated in a few countries, making the supply chain fragile. Meanwhile, the growing need for chips in everything from smartphones to AI-powered devices has outpaced production capacity. Although new chip factories have been built, it takes years to fully ramp up production and countries like the US have thrown up roadblocks and tariffs that influence pricing.

Most importantly, manufacturers are seeking the biggest payouts and those are coming from AI vendors and datacenter vendors.,

Delays in Getting Your Devices

The chip shortage has caused frustrating delays for anyone waiting for a new laptop or phone. If your company needs a new server, prices have doubled and tripled in the last year.

Manufacturers have pivoted to AI buyers, leaving the SMB market with limited stock and long waitlists. Popular models sell out quickly, forcing buyers to choose between inflated resellers, hardware alternatives, back stock, and used equipment.

If there is a bright spot here, it's an ecological one: more businesses are opting for refurbished and used equipment, which inadvertently cuts down on e-waste.

What's Next?

Delay, if you're early into a refresh cycle. You're probably looking at 2028 or later for any pricing stability. However, if you're working on a corporate capex plan with rigid equipment models, buy now to have stock on hand.

Plan well ahead, as prices between 2026 and 2027 are expected to increase. We recommend lead times of two to three months for new equipment purchases. Prices are not going down, so you may need to adjust your budgets accordingly. Stock is low on many items and it changes rapidly, so if you see what you need, at the right price, don't flinch.

It's not just new equipment. Service contracts, upgrades, and repair parts are more costly. Don't forget to check the refurb sections.