Ludhiana: Prices of storage devices, including SSDs and RAM, are soaring high, with a steep rise observed over the past four to five months. Not only is there a shortage of these components in the market, but the increased prices have also led to a jump in the cost of laptops and desktops.
Sharp Price Increases Across the Board
The prices of storage devices have jumped nearly four to five times in the past four months. Hard drives that were previously priced at around Rs 4,000 have now surged to Rs 18,000. Similarly, the cost of 8 GB RAM, which was earlier available for about Rs 3,000, has increased to Rs 11,000. Laptops that cost around Rs 35,000 earlier are now priced at approximately Rs 51,000.
Graphics cards have also seen a price hike due to storage constraints. Gaming laptops, which cost around Rs 70,000 until December, are now worth Rs 1.25 lakh.
AI Demand Driving Shortage
Gurpreet Singh, chairman of the Association of Computer Entrepreneurs (ACE) and also chairman of the Punjab Association of Computer Traders (PACT), explained the reasons behind the price surge. He stated that the increase is unlikely to reverse in the near future due to a significant shortage of these devices. The primary cause is the growing demand for Artificial Intelligence (AI) cloud-based systems, which require more storage. Many companies have shifted their manufacturing focus toward AI, which demands large servers and storage, leading to reduced production for the consumer market. This has resulted in a massive shortage and subsequent price rise.
There are approximately 300 dealers of computer hardware in Ludhiana and about 1,300 overall in Punjab.
Impact on Dealers and Consumers
Subhash Kumar, former president of ACE from a prominent computer and hardware store in Kochar Market, noted that investments have gone up while sales have slowed, adversely impacting their business. He mentioned that currently, only those who need computers for essential and critical work are making purchases, while upgrades and student laptop purchases have decreased.
Harish Mishra, manager at a gaming computers chain, reported that graphics card prices have also increased. What was available at about Rs 26,000 earlier is now priced at Rs 33,000.
Residents say that due to the price jump, they are settling for simpler configurations and entry-level laptops. Kirat, a business owner, said, "I was planning to purchase one with better RAM, processor, and storage. I delayed my decision, but within a budget of about Rs 55,000, only the starting range is available."
As storage devices and computers become more expensive, they are getting out of reach for many. Computer dealers and traders fear that this may lead to a slowdown in the market, impacting their sales and business.
