The chip shortage is here to stay. It has been slowly spreading over the pandemic period and it is now becoming increasingly problematic for many industries, with millions of people set to be affected by the shortfall.

Semiconductor chips are widely used in today’s modern technology, from computers, to cars, electric toothbrushes and tumble dryers. However, as demand is rising and supply is shrinking, the chip shortage has hit the headlines. 

“Severe impact”

One of the largest laptop manufactuers in the world, Acer, has said the worldwide global chip shortage will continue to have a “severe” impact on its production capabilities until at least the first or second quarter of 2022.

Research company Gartner has backed Acer’s assessment, estimating that the shortage would continue until at least the second quarter of 2022, with prices for some devices to increase as a result, while smaller companies will be squeezed by higher prices on chips from suppliers.

Increasing cost of new devices

Latest figures show that the worldwide semiconductor industry grew by $464 billion in 2020. Predictions for 2021 are a further 12.5% rise. Manufacturers have increased unit prices twice in the last year and the severe shortages of chips have limited production of the devices that provide the foundation to our digital economy. 

As the pandemic hit in 2020, smartphones were ordered to replace desk phones whilst working from home, and there was a sudden increase in wireless headphones investment. Desktops started gathering dust in empty offices whilst orders were placed for new laptops, causing shortages as early as quarter two in 2020. Demand grew further as schools closed and parents struggled to source multiple suitable devices for remote learning. 

Screen time increased as leisure activities were restricted and people found they had more disposable income as they were forced into lockdown. Because of this, sales of games consoles, tablets, TVs, media streaming devices and smartphones grew substantially. The latest smartphone technology compounded the shortage further as 5G enabled devices use far more chips than previous handsets.

The shortage has generated a storm between supply and demand, and price rises have eventually met the end-users. IT departments have been left unable to carry out upgrades: they are unable to roll-out planned IT infrastructure programmes or even provide a laptop or smartphone to their new employees. Not only does this effect operations, but older hardware that isn’t updated can pose a cybersecurity risk.

Could refurbished laptops be your solution?

Though you may not think they are as glamorous as brand spanking new devices, refurbished laptops often operate as well as they did when they left the factory. So the question is: why are you not using them? 

Refurb is a highly recommended option for IT resellers, providing excellent performance and value for money. They are devices that have been used previously and are then given a second life by a specialist company, like us here at Tier 1.

Most refurbished computers and laptops are retired corporate equipment with only a couple of years use. The devices are then put through a thorough process: cleaned, updated, tested and reconfigured, finishing off with a series of additional tests.

Key reasons to choose refurbished laptops

  • Wide range of ThinkPad, Latitude and EliteBook laptops in stock for immediate delivery
  • Significant cost savings
  • 12 month warranty as standard
  • Reduce your carbon footprint
  • Trusted supplier with 100s of 5* reviews

If the above is not enough, you may also have peace of mind in knowing that all our equipment comes with a minimum 12-month warranty, and extended warranties of 2 and 3 years are available for ultimate reassurance.

And to make the deal even sweeter, we are currently offering a 50% buy-back programme within 12 months, so there is really no reason to delay speaking to us and adding refurbished equipment to your product list.

Get in touch today to find out more about our hassle-free, affordable solution. Call 0161 777 1015 or email sales@tier1.com.

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