As you may be aware, the United States announced a series of tariffs on goods and materials manufactured in China. A majority of the electronics and hardware that are essential to the technology industry will be affected by these tariffs. Starting on September 24th, 2018 the US implemented a 10% tariff and on January 1st, 2019 they were planned to go up to 25%, although this has been recently postponed for 90 days while the US and China renegotiate.
In speaking with our major vendors, like Dell, HP, Cisco, and more, they have communicated to partners an increase in cost anywhere from 10% to 25% as current stock is depleted and new inventory comes in. We have already started to see this with some products and are expecting to see this across most if not all computer and networking gear in the upcoming weeks and months if nothing changes with the tariffs.
ISD has been working with our vendors to take advantage of the current costs here at the end of the year and we are encouraging our clients to do the same. End of year spending is a great time to focus on new hardware and technology for your company and this year more than ever we want to help you take advantage of this before the price increases take effect.
As we have communicated in our newsletters and communications over the past 6+ months, Windows 7 end of life takes place January 2020, just a mere 13 months away. This is a good time to take advantage of the current lower prices on equipment and get into the 2018 tax year with Section 179 tax benefits (see your CPA with questions on Section 179). We would be happy to discuss your technology needs for the upcoming year and are working diligently to help all of our clients save money on their technology.