The Turning Point: Why the Era of Low-Cost Hardware is Shifting
The global security industry is currently facing an unprecedented “perfect storm.” The explosive demand for AI infrastructure has triggered a severe global AI chip shortage, redirecting semiconductor priorities and causing a ripple effect throughout the entire hardware ecosystem.

As a result, component costs have experienced a staggering 200% surge across the board. This is no longer a localized issue; it is a fundamental market shift that is reshaping the pricing landscape for all major manufacturers.

Industry-Wide Impact: Tracking the Giants
To provide perspective, industry leaders have already initiated significant price corrections to offset these upstream pressures:

Hikvision: Adjustments ranging from 8% to 15%.
Dahua: Adjustments ranging from 3% to 8%.
Uniview: Ongoing strategic price realignments.
Deep Dive into Material Costs
The volatility is driven by extreme spikes in the raw material market. At our manufacturing base, we are seeing historic cost increases:

Electronic Components: Critical items like 10uF capacitors have skyrocketed to 8x their original price.
PCBs & Memory: PCB costs have doubled, while DDR prices have surged by over 10x.
Raw Materials: Essential materials such as metals and plastics have increased by more than 40%.
Official Notice: August 2026 Pricing Adjustments
To maintain our commitment to product quality and manufacturing excellence, we will implement a price adjustment effective August 1, 2026.

The projected adjustment ranges are as follows:

Outdoor Stations (Entry Systems): Estimated increase of 10% – 20%.
Indoor Monitors: Estimated increase of 11.5% – 15%.
Important Policy Note on Price Guarantees: We must be transparent with our valued partners: We can no longer provide long-term price guarantees. Because our pricing is tied directly to the live costs of chips and components from our suppliers, all quotations will now be generated based on actual order application at the time of purchase. Past quotes that have not been converted to firm orders will no longer be honored.

Strategic Roadmap: What You Should Do Right Now
We understand the impact this has on your margins and project planning. To mitigate risk, we strongly advise the following actions:

Immediate Quote Locking: Confirm any pending product requirements and lock in today’s quotes immediately before the August wave.
H2 Requirement Planning: Evaluate your procurement needs for the second half of the year (H2) now. Early risk assessment is crucial.
Batch Ordering: We anticipate further price volatility and potential additional hikes later in the year. Placing batch orders now is the most effective way to secure preferential pricing and ensure stock availability.
At Morningtech, we remain dedicated to navigating these market headwinds alongside you. We appreciate your continued trust as we adapt to these global challenges together.

For a firm quote on your next project, please contact your Sales Manager today.