Hardware Shortage Continues as Prices Set to Rise 7-20%

Cisco has warned its customers that the cost of hardware is set to rise between 7 and 20% from the start of November due to the "ongoing industry-wide global supply chain challenges". This has come after an extensive period of supply chain issues and shortages severely affecting the technology hardware sector. Cisco CEO Chuck Robbins stated back in May that they were fighting to get the components they needed, and were considering ‘’strategic price increases’’

In a statement sent to technology news site, The Register, a Cisco spokesperson said:

‘’We review pricing as a standard business practice and work with our suppliers to provide the best value to our customers and partners.

In connection with the ongoing industry-wide global supply chain challenges on certain components, Cisco will increase its base pricing structure effective at the beginning of Cisco's Q2 [November]. The base pricing structure reflects increased cost and availability of certain components and related manufacturing and shipping costs.’’

Other providers have followed suit in the price increases, with HPE raising their prices during the summer, and Arista admitting that they may have to bump up prices on ‘’selective models’’ in 2022.

The price increases aren’t the only thing that’s affecting hardware, increased lead time due to material shortage and covid-related delays saw Arista reporting 60-week lead times for semiconductors, impacting routing, switching, data centre and campus products. Arista CEO Jayshree Ullal told investors that "we're affected on chips, memory, copper, passive components, freight, logistics, expedite fees. I don't know if I can pinpoint; it affects all our products. And the lead times vary… they're all double." She continued by adding that the supply situation was "more than the worst I've ever seen it, I think it's also going to be prolonged. I guess we're all hopeful, we will all recover from the COVID pandemic. But everything from copper shortages to wafer stock to assembly to manpower, people, logistics, freight. Just about every aspect of it is challenged."

Other networks such as Extreme and Juniper have also reported extended lead times due to lack of availability.

The current hardware market may seem dire, and both buyers and suppliers are suffering as a result, but Cisco has a unique way of mitigating the current hardware climate, Cisco Refresh.

Refresh to the rescue!

Cisco Refresh is a remanufacturing program that aims to reduce the number of raw materials used and wasted in product manufacturing. Cisco Refresh inventory spans all aspects of IT hardware, from switches to routers and everything in between, featuring thousands of eco and budget-friendly hardware solutions ready to be shipped, vastly decreasing the current extended lead times and helping you avoid the imminent price hikes.

As a certified Cisco Refresh outlet, Chulo can assist you with all your remanufactured hardware needs, and make sure you are making the most of the discounts available and offering a full Cisco Refresh warranty. We are also the best place to sell Cisco equipment – just get in touch with one of our specialists and we can arrange a quick collection of old hardware.

Shortened lead times, incredible prices, as good as new products, and a full warranty – there’s not much left to be desired when it comes to Cisco Refresh.