September 12, 2021

What’s With the Current Hardware Shortage in Australia?

Struggling to get your hands on IT supplies? You’re not the only one. There’s a global shortage of computer chips, which means businesses in Australia are having to pay above the odds for the stock they need to keep their IT operations running smoothly.

So, how is this affecting Australians, and why is it happening?

What the shortage of computer chips means for you

Right now, Australians are dealing with longer wait times and higher prices for computer chips. The chip drought - dubbed “chipageddon” - is mostly affecting the automotive and consumer electronics industries.

It means that Aussies in the market for a new car could be waiting more than six months, depending on the model. It’s given used cars the upper hand; since they’re more readily available, more Australians are choosing to buy second-hand vehicles, and the cost has gone up.

There are also reports of TV and electronics shortages, with JB Hi-Fi boss Richard Murray warning shoppers to “expect stock shortages on televisions and other electronics for the foreseeable future as soaring sales off the back of elevated demand for consumer tech cripples global supply chains.”

As a side note, The Good Guys reported a booming demand for refrigerators, portable appliances, TVs and computers, which is probably because Australians are spending so much time inside.

Samsung’s co-chief executive has also commented on “a serious imbalance in supply and demand of chips in the IT sector globally”, and the mobile giant could be postponing the launch of its next smartphone because of this.

Where has all the IT hardware gone?

Businesses and individuals in Australia are feeling the effects of a lack of computer hardware. It seems that manufacturers are struggling to keep up with the demand for semiconductors, which is slowing down the production of cars, phones and laptops. As a business, you rely on the latter two, and you might find yourself digging a little deeper into company pockets to update your tech.

And, like so much over the past couple of years, the pandemic is to blame. CEO of Intel, Pat Gelsinger, said the pandemic caused a “cycle of explosive growth in semiconductors” that manufacturers have struggled to keep up with. He went on to say that we could be waiting “a couple of years” until the ecosystem addresses the shortages and we return to normal.

The good news is that distributors and vendors in Australia are doing their bit to minimise disruptions and keep their customers in the loop. While lead times may be longer, the hardware is available. The best advice right now is to plan in advance - let your supplier know as soon as you require new hardware for your business’ IT systems.

Ask The IT Department

If your IT operations have been affected by the global chip shortage, maybe now is the time to outsource some of your processes to us. Our managed IT services are designed to streamline your IT ecosystem, so you can thrive - whatever the challenges. Give us a call on 1300 10 10 40 to learn more.

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