Electronics prices expected to rise

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Electronics prices expected to rise

Consumers can expect to pay more for electronic goods over the next two years due to a shortage of computer chip supplies.

The shortages – due mainly to increased demand in the U.S., Europe and Asia – have more than doubled the cost of some memory chips in recent months.

Analysts say the shortages will not only mean higher prices, but have already pushed manufacturers to change the mix of features offered in their products, noting that systems that included 128 megaBytes of memory six or eight months ago now come with 64 megaBytes.

Recently, PC maker Gateway announced it will buy microprocessors from Advanced Micro Devices because of a shortage of Intel chips. Details on that story are available at www.zdnn.com.

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