Prices going through the roof? - Page 1
Forum section: electronics / general

author: jitter
author_rank: Frequent Contributor
timestamp: December 09, 2015, 05:04:35 pm
content: Since several weeks, the company I work for is being confronted with huge price increases of components, especially those manufactured by TI (including those brands that TI owns).We're talking about 25% or more.We're also being confronted by suppliers unwilling to give new pricings depsite our need to have them to give quotations to our customers.We find that agreements on prices with our suppliers are no longer set in stone. E.g. an FPGA that we had negotiated to buy for € 16 for will now cost € 23. We just can't get them for the negotiated price. The suppliers use a take it or leave it approach.Something is going on and I was wondering if others out here in the business are noticing the same...

author: PChi
author_rank: Frequent Contributor
timestamp: December 09, 2015, 07:06:02 pm
content: I believe that the Euro isn't doing well against the dollar. TI are likely to be basing pricing on the dollar and with Quatantive Easing (printing money) of the Euro it isn't likely to improve.

author: jitter
author_rank: Frequent Contributor
timestamp: December 10, 2015, 06:45:51 am
content: Thanks for the replies.The value of the dollar has been responsible for a gradual increase over a much longer period, now we're seeing remarkable jumps, especially with TI components.We have several suppliers, but the price rises have risen with all of them.The sentiment I hear voiced is that TI has bought a lot of companies and has become so big that it can more or less set prices, and has started doing so.If this trend holds, I guess we'll know within a couple of months...

author: mtdoc
author_rank: Super Contributor
timestamp: December 10, 2015, 07:14:56 am
content: The US dollar has appreciated about 25% relative to the Euro over just the past 6 months.

author: fivefish
author_rank: Frequent Contributor
timestamp: December 10, 2015, 08:00:32 am
content: TI is discontinuing by next year a lot of chips (previously made by National, which TI bought just recently). Yep, prices going up, and a bit of panic buying going on right now.... like people buying bread and milk knowing a snowstorm is coming.I'm stockpiling these chips at the moment for my own inventory, and I assume next year prices will go even higher.

author: Gribo
author_rank: Frequent Contributor
timestamp: December 10, 2015, 02:40:31 pm
content: TI recently hiked the price of their tools by ~15% in USD terms. Meh, there are still some alternatives out there.

author: tooki
author_rank: Super Contributor
timestamp: December 11, 2015, 12:12:22 am
content: In many countries, there are laws expressly prohibiting a company from telling you you cannot sell their product. It's the first sale doctrine (I think). Once you buy an item, it's yours to do with as you please, period.

author: AlxDroidDev
author_rank: Frequent Contributor
timestamp: December 11, 2015, 12:18:42 am
content: Quote from: fivefish on December 10, 2015, 08:00:32 amIs there a list of these chips anywhere?

author: ataradov
author_rank: Super Contributor
timestamp: December 11, 2015, 12:19:12 am
content: Quote from: tooki on December 11, 2015, 12:12:22 amYep. But they also reserve the right not to sell them to in a first place. So sell all your current stock all you want, but you simply won't get new parts or won't get them at a good price.

author: ataradov
author_rank: Super Contributor
timestamp: December 11, 2015, 12:23:41 am
content: Quote from: AlxDroidDev on December 11, 2015, 12:18:42 amSurehttps://www.eevblog.com/forum/microcontrollers/tins-eol-of-old-process-is-due!-ltb-now!/msg792388/#msg792388I believe there was another topic about this with more comments, but that's the one returned by search.

author: EEVblog
author_rank: Unknown
timestamp: December 11, 2015, 01:24:57 am
content: The USD has been the strongest performing currency in the world over the last year, so most countries local currencies are getting hammered against it.

author: FireFlower
author_rank: Regular Contributor
timestamp: December 11, 2015, 01:35:18 am
content: I have only seen prices going down thanks to oil barrel prices being low. I still wonder when I can fill my car's gas tank with 1€/1l.

author: Bud
author_rank: Super Contributor
timestamp: December 11, 2015, 01:52:55 am
content: Quote from: blueskull on December 10, 2015, 05:21:18 pmI am just wondering if your projects goes live and attracts interest so you decide to make a big production run - would you still source the FPGAs from Taobao ? I'd think as an entrepreneur (not hobbyist) one should think about a reliable sourcing process. As to me if a part is not on Digikey or Element14, it is excluded from the design and I look for a replacement part which is.

author: coppice
author_rank: Super Contributor
timestamp: December 11, 2015, 02:03:29 am
content: When we put the roof on our new house a few months ago it was the price of the roof itself that shocked me.

author: Galenbo
author_rank: Super Contributor
timestamp: December 11, 2015, 09:05:48 am
content: Quote from: FireFlower on December 11, 2015, 01:35:18 amI'm happy too, in the short term, but if you see the number of companies that close due to such a low price, and how much the goverment looses when prices are low, you can expect less income and higher taxes elsewhere.