IT Hardware Prices Surge: What, Why and How to Mitigate Risk
IT hardware prices are climbing and businesses must act now to mitigate risk. Understand what is going on, why prices are rising and what you can do today.
IT Hardware Prices will continue to surge in 2026
In recent months, IT hardware prices have surged at an unprecedented rate, creating new challenges for organisations across all sectors. This sharp increase is driven by a combination of global supply chain disruptions, soaring demand for microchips and RAM- especially as AI adoption accelerates - and production constraints as manufacturers prioritise high-bandwidth memory over traditional components.
As a result, businesses are facing higher costs, longer lead times, and greater uncertainty when planning their technology investments. Against this backdrop, we sat down with Alex Terrone, CHG-MERIDIAN’s Head of Corporate – Australia to learn how these market dynamics are reshaping IT buying behaviour.
How have recent IT hardware price increases impacted IT purchasing decisions?
We’ve seen a significant shift in customer behaviour over the past 12–18 months. With hardware prices rising there’s a growing preference for flexible financing models such as leasing and device-a-service solutions. Additionally, customers are forecasting and planning technology orders and refreshes earlier to secure today’s pricing for upcoming acquisitions to protect their budgets from the projected increases.
What are the main concerns business leaders are sharing with you regarding the price increases?
The primary concern is budget predictability. IT leaders are under pressure to deliver more with less, and unexpected price increases can disrupt planned projects. There’s also a heightened focus on total cost of ownership – they want to ensure they’re maximising value from every dollar spent, not just at the point of purchase but throughout the asset lifecycle.
What should businesses do now to reduce risk and achieve IT budget certainty?
IT leaders should be having proactive conversations with their technology partners about how to manage both cost and risk in today’s volatile market. This includes exploring financial structures that can reduce the total cost of ownership and provide predictable, fixed payments over the asset’s lifecycle such as leasing. Leasing not only helps spread costs but also improves budget certainty and cash flow management.
Right now, we are working with our customers and their preferred suppliers to lock-in today’s pricing for their upcoming acquisitions and refreshes. By securing hardware pricing in advance, our customers are protecting themselves against further price hikes and ensuring that their technology refresh plans stay on track, even as market conditions change.
"Rising hardware costs and supply delays are putting significant pressure on IT budgets and refresh timelines. We are supporting our customers by engaging early and securing hardware pricing now with their preferred suppliers to protect their budgets and refresh their technology as planned."
Alex Terrone, Head of Corporate - Australia, CHG-MERIDIAN
What advice would you give to business leaders navigating the current IT procurement landscape?
Stay flexible and open to new models of technology consumption. Evaluate the total cost of purchasing and owning hardware versus paying for use, not just the upfront price. And partner with providers who can offer transparency, flexibility, and end-to-end support. In times of uncertainty, having a trusted partner makes all the difference.
Are you seeing changes in the types of technology customers are prioritising?
Absolutely. There’s a noticeable trend towards prioritising essential upgrades and deferring non-critical investments. Many are also exploring AI-powered devices and implementing strict refresh cycles to mitigate security risks. Sustainability is another key factor - customers are increasingly interested in circular economy models that extend the life of IT assets and reduce environmental impact.
Experts featured in this article
Alex Terrone
Head of Corporate - Australia
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IT Hardware Prices Surge: What, Why and How to Mitigate Risk
IT hardware prices are climbing and businesses must act now to mitigate risk. Understand what is going on, why prices are rising and what you can do today.
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