Hard to find tech is topping people’s holiday wish lists. Whether it’s the new smartphone or the hottest gaming console, shoppers are having a more challenging time purchasing new tech this year. This holiday season, online retailers’ out-of-stock products are expected to rise 360% from 2019, with electronics ranking as one of the most affected categories.
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Why are electronics so hard to get a hold of? There are two issues at play. An ongoing chip shortage is making electronics of all types more expensive. A 30% chip cost increase is anticipated throughout 2022.
Two, supply chain costs have risen dramatically in the past two years. Shipping a 40-foot container from Asia (where most electronics are manufactured) to the US costs nearly 14x what it did two years ago.
Airfreight is already more expensive than maritime shipping, but recent price hikes have not helped the issue. Asia-US air cargo rates have been up 40% since the end of August 2021. Together, these two problems mean that in-demand technology products are simultaneously more expensive and in shorter supply.
What should shoppers do about the shortage? How can they please their loved ones with quality gifts when the dominant logistics mode is against them?
Unless the recipient of their gift is wedded to the newest model, shoppers should consider the benefits of revamping used technology. Investing in quality repairs could reduce household spending on electronics by 22%. Instead of seeking new ones, repairing older devices circumvents the current supply chain drama.
More than 120 million used smartphones are available worldwide, and many of them are already located in North America. Simple repairs like battery replacement can add years to a gadget’s lifespan. Regifting use tech is cost-effective, eco-friendly, and sure to please in this challenging holiday season of 2021.
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Last Updated on December 7, 2021.