Cost Increases and Tariffs: ASUS to Increase MSRP on Graphics Cards and Motherboards

It is fairly easy to state that 2020 has had a deep effect on the supply chain mechanics of creating electronics and electronic components. Not only have there been logistical challenges in meeting regular levels of production, but the increase in demand due to work-from-home measures is putting additional strain up and down the ecosystem. On top of this, continued volatility with regards to trade and tariffs have been leaving more questions unanswered as to how companies involved in the results of all of this should engineer their operations.

To that end, ASUS has put out a statement through its public Facebook group stating that it will be increasing MSRP on components, with graphics cards and motherboards being highlighted as the initial targets, with more to potentially follow. The reasons for this are described in the post, made by long-time ASUS employee Juan Jose Guerrero III, are due to ‘increases in cost for components, operating costs, and logistical activities plus a continuation of import tariffs’. Guerrero goes on to say that ASUS ‘worked closely with our supply logistic partners to minimise price increases’.  

The exact scale of the price increases will be borne through the next few weeks, as the price adjustments work their way through the supply chain to distributors and finally retailers. ASUS is a large scale production house for both AIB graphics cards and motherboards, and can often deal with economies of scale, so the fact that the company has chosen to be open about its MSRP increases should indicate that other similar businesses might have changes coming soon, if not already applied, given that the issue of component costs, logistics, and import tariffs are industry wide and not just limited to one company. ASUS highlights that these are two initial product lines, and ‘additional models may see an increase as we move further into Q1’.

Should an exact price differential list be made public, we will share it.  

Source: ASUS PC DIY Group (Facebook)

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