Why Are Power Supplies So Expensive To Replace?

It is noticeable that the prices and availability of various power supplies are having issues lately. Supplies with high capacities like 850W have becoming scarcer. A reason is partly because of crypto currency mining. Even suppliers that sell only a few quantities of PSUs have had their stocks sold out and their warehouses are left empty. Because the supplies are lowering while the demand is increasing, prices are automatically rising. So right now would not be the ideal time to have power supplies replaced.

List of Reasons of the Price Increase in PSUs

  • Higher demand – as everything else in economics, the higher the demand, the chances of prices increasing. The resurgence of crypto mining is one of the main reasons consumers are demanding more high capacity supplies.
  • Issues with sales chain – before a product goes to the hands of the consumer, it passes by a long chain starting with the factory to the brand’s headquarters, passing it to the local office, then to the distributors, resellers and finally to the consumers. Booking the orders for the supplies is done reversely. The resellers determine the demands of the consumers, and then make a booking to their distributors. The distributors will request an amount to the brand’s local offices then to the headquarters that will make the final order to the factories. This has been an inefficient practice being done. Though there are resellers large enough to go directly to the local offices or even to the headquarters. As these items get passed, so are their prices.
  • Currency exchange rates – parts are usually found in China as also the wages to the factory workers while the market is mostly centered on America. The exchange rate has been dropping since 2017. Because of this, factories are increasing prices to make up for the resulting losses due to the exchange rate.
  • Issues on the availability of electronic parts – the lead time for parts like coils, capacitors, MOSFETs, ICs, transformers has also increased. The price increase is not just because of the increase in demand but also because of the increase in production of products such as electric vehicles. The lead time takes up to 10 weeks at times.
  • Shipping costs – the shift to air cargo to transport the parts have resulted to faster deliveries and stock refills but costs much higher. With the increase in shipping costs, consumers are the ones who will carry that weight.