Supply Chain Disruptions and Increased Production Costs
Steel Series products are primarily manufactured in China, which witnessed supply chain disruptions during the COVID-19 pandemic. Lockdowns and restrictions hindered production and transportation, leading to shortages and increased raw material costs. This added pressure on Steel Series to source materials from alternative regions at higher prices.
Demand Surge and Limited Supply Drive Prices Upward
The global demand for consumer electronics has soared in recent years, fueled by the rise of remote work and entertainment. This increased demand for gaming peripherals, including Steel Series products, has outpaced supply, creating a price premium. Additionally, Steel Series maintains high quality standards, limiting its ability to expand production rapidly, further contributing to price increases.
Technological Advancements and Premium Features
Steel Series products are known for their innovative features, such as customizable RGB lighting, advanced sensors, and ergonomic designs. These enhancements require additional research and development costs, which are reflected in the higher price of the products. Furthermore, Steel Series targets a premium market segment, with customers willing to pay a higher price for products that offer superior performance and functionality.
