You work for a medium to large organization and finally received approval from IT and purchasing to purchase laptops for your department. You happily opened your browser and went to your favorite online store to place the order. Your smile quickly turns into a frown when you see the expected shipping date: four months from now! Thinking this is a logistical problem, you call your local computer store and ask about supplies.
If you want to take care of the laptop that is given to you at work and keeping your laptop cool you can use a cooling pad.
“Sorry, we only have one of these in stock and we’re not expected to have more laptops for another five months,” the sales associate says.
Now you are bewildered and starting to get angry. What is happening?
The perfect storm: chips, competition, China and COVID-19
There are many reasons why businesses can’t purchase laptops right now.
First of all, a chip is for a laptop, like an engine is for a car. You can have all the shiny exterior components, but you won’t go anywhere without the engine.
Second, China, Japan and Korea mass produce most of our chips, so they make their own technology investment decisions. While wafers come in different sizes, from 100mm to 300mm, there has not been enough investment in 200mm wafers, which see the most use in laptops.
Why haven’t Samsung, TSMC, Qualcomm and others invested in laptop chips? Three words: competition and profitability.
Chips are made for a variety of products, including cars, Wi-Fi routers, Bluetooth technology, and of course, smartphones. The focus is more on these products due to the demand for cars and 5G devices.
Third, US sanctions against Chinese technology companies. Many Asian companies have stockpiled their chips to cause shortages. Of course, scarcity leads to price increases. Unfortunately, this means that laptop delay times may extend well beyond the recession and the cure for COVID-19.
Finally, COVID-19 has created logistical nightmares, talent shortages, and long delivery cycles.
What should organizations do?
There are three alternatives to solve your problem:
- Place your order and enter a short term laptop rental agreement.
Since many events and trade shows have been postponed until the second half of 2021 or even 2022, current laptop models are available for rent. You may not get the exact setup you want for your apartment, but it will be close. The best part is that these laptops are fully configured, shipped (or delivered), and insured. A 24/7 technical hotline is also available to answer any questions. - Skip the order and opt for a long-term laptop lease.
Maybe you don’t need the fastest chips or the biggest monitors for your apartment. Signing a capital lease still allows for depreciation of the equipment over time. - Evaluate your IT needs and take a two-pronged approach: order and rent/replace for the most urgent needs.
Those laptops should be replaced immediately if people in your department have slow computers or outdated operating systems. However, not everyone has the same need. Sort and replace as appropriate.
Conclusion
Given that most laptop chips are not produced here and COVID-19 is not going away anytime soon, competition will remain fierce among other tech players (i.e. automakers, phone providers); You need to have a game plan regarding your laptop replacement strategy.
Companies like Rentacomputer.com can help. Call them at 800-736-8772 to speak to one of their laptop experts.
