Price of computers and peripheral equipment

The price index for computers and peripheral equipment decreased slightly to 58.28 in 2024, representing a 0.1% decline from 2023. This modest decrease reflects the technology sector's ongoing efforts to balance supply chain cost pressures with competitive pricing strategies. Manufacturers have worked to absorb input cost increases while maintaining market share, resulting in relatively stable pricing despite continued challenges in semiconductor availability and elevated shipping costs throughout the year.

Computer and peripheral equipment prices have exhibited notable volatility over the past five years, temporarily disrupting the technology sector's long-standing deflationary trend. The index declined from 56.31 in 2019 to its lowest point of 54.95 in 2020 before beginning an upward trajectory that peaked at 58.34 in 2023 and moderated slightly in 2024.

The pandemic initially drove prices down in 2020 as demand uncertainty led to inventory clearances and reduced production costs. However, the subsequent surge in remote work and digital transformation created exceptional demand for computer equipment throughout 2021 and 2022. Supply chain disruptions, particularly semiconductor shortages, constrained production while demand remained elevated, driving the index to 58.23 in 2022.

This period marked a temporary but significant shift in computer pricing dynamics. For the first time in decades, computer prices rose consistently rather than falling, reflecting multiple converging factors including pandemic-driven supply chain vulnerabilities, increased material costs, and growing complexity in manufacturing. Energy costs and shipping disruptions further contributed to production expense increases during this period.

The technology refresh cycle intensified dramatically during these years. Organizations that delayed hardware purchases during the initial pandemic uncertainty began comprehensive upgrade campaigns in 2021-2022. Simultaneously, the emergence of artificial intelligence applications created demand for more powerful computing hardware, though pricing premiums for AI-capable systems have begun moderating as these capabilities become more standardized across product lines.