So Russia Ukraine war, china’s zero Covid-19 tolerance policy, are the terms that almost everyone is hearing about over the past few months worldwide. But did you ever think about how could these events matter to you? Well, not about everyone, but through today’s article, we will see how it could affect the pc and smartphone game lovers at a glance! Why? Because graphic cards are getting expensive! Let us know about “Why Are Graphics Cards So Expensive?”
What Is A Graphic Card?
If you love pc games, like most folks, you are most likely to know about this term graphic card. Perhaps it must be one of the things on your priority list while purchasing pc. In short, for new learners, a graphic card is a key component that determines what amount of graphics your device system can handle while you are gaming. It is perhaps, one of those parts of your device that you pay the most.
Why Are Graphics Cards So Expensive?
To tell the truth, they have always been quite expensive, irrespective of any of the world events happening, stated above. For instance, average prices for graphic cards are anything between $100-$600, whereas the newly designed even amount to $1000.
So what has caused it to get expensive all of sudden? To make graphic cards, you need a chip, which is an important material component for any electronic commodity, today. A chip contains metals such as palladium, nickel, etc. Not to tell here that Ukrainian land holds a large number of palladium stocks, naturally, highlighting its importance in chip manufacturing. & as I said before, the war has caused disruptions in almost every economic activity, not just regionally but worldwide. So, this makes the chip-making part difficult a lot.
Covid-19 Pandemic
As if it is not enough, there come Covid-19 pandemic episodes. Sitting in homes like prisoners for two consecutive years made people seek some entertainment, which quite obviously caused an increase in several game lovers worldwide. As the demand increases, people are hurrying to purchase pcs specially made for gaming purposes, consequently increasing the demand for graphic cards.
Now, the market is facing a supply shortage of chips due to various reasons. First, supply-chain bottlenecks. Covid-19 brought retention of every physically moving & transportation activity, affecting supply management system of chips as for any other thing. Then comes an increase in shipment charges, and container costs (due to shortage), making the situation worst.
To add on, as cases rose, China decided to accept a zero Covid-19 tolerance policy, which ultimately affected supply chains when they already had enough problems to face. So, all in all, when gathered, it shows increasing demand for the limited supply of chips in the market. & as even what economics is all about, this is why you are finding it difficult to purchase pcs due to their ever-expensive graphics card component.
Not A Game Lover? Still, It Affects You!
For those who consider this issue regards game lovers, you are seriously mistaking it! To state the fact, the graphics card is the reason why you can see visuals, and images on your pc, smartphone, or laptop. So the issue concerns not just gamers but those who use pcs & professionals as well. This fact gets highlighted with again Covid-19 consequences which made almost every person (who offers intellectual & nonphysical activity based labor) had to work from home by online medium, resulting in a rise in demand for pcs & graphic cards as well. Not just about pandemic times, organizations worldwide are supporting staff willing to work from home which ultimately as has been proved controls cost altogether & increases employee productivity a win-win situation for any firm.
Now to control the pandemic production has to stop in the case of pcs as well. This created a shortage of pcs as a commodity, & as economics simply proves it, this affected the prices of graphic cards along with pcs, making them costly.
Those who still could afford these devices made everything possible & got them as soon as possible, leaving others lacking at it. In addition to this, as we all would have seen it too, people were feeling anything but bored. Games were both easy & possible way to manage this state of mind, & so it did too! People started getting involved in playing online games more & more with friends & relatives. All this causes some wear & tear as it happens with any other item with overuse. This further affected the demand for pcs & hence graphic cards! As the demand & supply equation suggests this increased prices of graphic cards sharply!
Conclusion
Now we have learned “Why Are Graphics Cards So Expensive?”, Coming to the end of this article, researchers & analysts do not see this situation getting in control any sooner yet! So we still might get graphic cards at higher prices only. The only thing that we can do is use devices as a rational mind considering the market situation.
I hope readers found the article useful! Thanks for reading!
