One of the unforeseen consequences of the Covid-19 pandemic is the rise in, and the volatility of, the prices of integrated circuit (IC) chips made in China. ICs that were often less than a dollar, are now several dollars; a CPU that used to be $2 is now $15, affecting the base cost of the products that are designed around them.

And, unless if you’re ordering a containerful of materials, shipping has become the single largest expense. The container problem, and what I presume to be a dearth of flights, have resulted in untenable costs. For a small business such as mine, ordering 2 boxes of materials that cost, say, $100, will involve a shipping charge of over $1000–and that’s by sea! By air, it might only be a paltry $300!

Together, prices and shipping have caused, what is routinely referred to as, a supply crisis.

While this might not be as noticeable if the product is aimed at the enterprise/business market (with a corresponding price), it certainly becomes a significant barrier if you’re targeting the consumer market. If you were selling a $10 product using a few 10-cent ICs, the product will be commercially unviable if you suddenly have to pay a few dollars for those ICs, and a few dollars for their shipping cost!

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To the bulk of consumers, the legitimacy of a price is indicated by amazon.com: If yours compares to Amazon’s, then it’s fair; otherwise, it’s a rip-off!