China's currency devaluation is having an immediate impact on the pricing of computer hardware in the country. DigiTimes writes most motherboard and video card vendors have recently jacked up prices by 3-5 percent to minimize currency exchange losses. The site notes Lenovo increased its PC pricing at the end of this month, ASUS and Gigabyte both raised motherboard prices and Intel also raised the prices of its new Skylake processors.
The price hike will likely further dampen demand, which has been weak since the start of the year, but the reporter writes the vendors have no choice as leaving the prices at the same level would have wiped out profits.
The sources pointed out that demand for motherboards and graphics cards in China has been weak since early 2015 and the price increases will only further dampen demand. However, if the vendors had not increased the prices, their profits would have been completely canceled out by the exchange losses.
Intel has also raised the prices of its two high-end Skylake processors released in early August, and Skylake processors, which are scheduled to launch in September 2, will also see price increases from the pricing ranges previously quoted, AMD is also following suit.