Netflix has increased its pricing for the second time in a year as the cost of its premium plan was hiked 14 per cent to $24.99 a month. Photo / Supplied
Netflix has increased its pricing for the second time in a year as the cost of its premium plan was hiked 14 per cent to $24.99 a month. Photo / Supplied
The rising cost of living and the return of inflation is hitting Kiwis hard. In a new Herald series, Inflation Nation, we explore the reasons and impacts of the price shock - and possible solutions. We also share some great life hacks on how you can save money and livemore affordably.
Rising costs have translated into price rises for tech from your favourite gadgets to video streaming to cloud-based business services.
Inflation certainly hit the PC market, with the average laptop increasing in price by about 10 per cent over the past year, according to IDC.
The market research firm puts the price jump down to pandemic-induced component shortages - just as hundreds of millions of people worldwide want to upgrade their home office computers.
And IDC says the situation has been compounded by the fact that with shortages of key components, PC makers have concentrated on making more of their higher-end, higher profit-margin models - and fewer entry-level, cheaper laptops. So you might not find the model you want to buy, and have to substitute a more expensive one.
The past year has also brought price increases for a number of cloud services. We've seen it happen with business services, such as Xero put its pricing up by between $1.50 and $3 a month, to sport, where Spark Sport went from $19.99 to $24.99 per month, to entertainment where the price of Sky TV's Neon was increased by 15 per cent to $15.99 per month. Netflix also increased its pricing for the second time in a year as the cost of its premium plan was hiked 14 per cent to $24.99 a month.
Spark Sport subs have risen from $19.99 to $24.99 per month. Photo / Photosport
And after what it billed as a "six-month price freeze" - a sales pitch for these inflationary times - Disney raised the price of its streaming service Disney+ by $3 to $12.99 per month.
All of the providers argue they're now providing more for your money. But for streamers who like to juggle a lot of subs, it's all starting to add up.
Analysts say brace yourself for more tech price increases in the months ahead, especially in smartphones and computers. This week, China put Shenzhen - where so many of the world's electronic goods are assembled - into a fresh round of Covid lockdowns, forcing a number of high-tech manufacturers to temporarily close their doors.
And Russia's invasion of Ukraine has put even more pressure on the already creaking supply of silicon chips. According to an FT report, Ukraine supplies about 50 per cent of the world's neon gas - a byproduct of Russia's steel industry that is purified in the former Soviet republic and is indispensable in chip production.
Gadget makers stockpiled neon as Putin began to circle the Ukraine. But with the two largest suppliers in Ukraine now shut down and spot prices surging, get ready to pay even more for your next car, phone or laptop.
To save on tech, shop around for the best broadband deal. A price war - especially around wireless broadband - has driven down the cost of fast internet in NZ.
And while a top-of-the-line smartphone still costs the same as a second-hand car, there are new mid-market models that now offer a lot for your money such as Apple's latest iPhone SE ($799) and Samsung's S21 FE ($1099).
