Month: November 2018

A technology group says that tariffs could raise technology costs by $2.4 billion in 2019. The tariffs being considered could result in us paying between $1.6 and $3.2 billion more for electronic products. This includes things like circuit assemblies, routers, modems, smart speakers, smartwatches, Bluetooth-enabled devices, and other IT devices according to a study published by the CTA (Consumer Technology Association).

“This Harmonized Tariff System (HTS) product category targeted for tariffs includes printed circuit assemblies, an input into the production of countless products in today’s economy.

Imposition of the tariffs causes some sourcing of U.S. imports from China of printed circuit assemblies to shift to U.S. producers and other countries such as Mexico, Malaysia, Thailand and Taiwan. U.S. purchasers of printed circuit assemblies will see prices of Chinese products jump by 9 to 23 percent (for the 10 percent and 25 percent tariffs, respectively); costs of alternative supply from U.S. manufacturers will also be higher by 2 to 3 percent.”

How Did This Tariff War Start?

President Trump imposed tariffs on $50 billion in Chinese goods. He cites the $375 billion trade deficit the U.S. runs with China as the reason. China announced $60 Billion in tariffs on U.S. goods if Trump imposed the additional duties.

And now the United States says it will impose tariffs on an additional $267 billion worth of goods if China takes retaliatory action against our farmers or other industries. The tariffs are aimed at affecting China, but they will also bring higher costs for businesses and consumers.

Where Will It Stop?

The U.S. and China have the world’s biggest trading relationship but it is increasingly strained over complaints that Beijing’s technology development tactics hurt American companies. One such example is where a Chinese court banned Micron Technology Inc. chip sales, cutting the U.S. company off from the world’s largest semiconductor market.

Trump’s tariffs target tech products that benefit from industrial policies such as “Made in China 2025,” for Chinese competitors in robotics, artificial intelligence, and other fields.

What Does This Mean For Businesses and Consumers That Use Technology Products From China?

This could directly hit us all in the bank account, with “a substantial negative impact,” the CTA said. Tariffs of 10 to 25 percent would increase prices on popular personal electronics and other IT solutions.

Most of these products connect us all to the Internet and help us work and stay connected. The list of potential devices includes:

• circuit assemblies,
• broadband modems,
• smart speakers,
• smartwatches and other smart appliances,
• 3D printers,
• routers,
• graphics cards,
• robotics,
• AI products, and
• Bluetooth-enabled devices such as wireless headphones and fitness trackers.

They could increase in cost by 8.5 to 22%. And the CTA estimates that all connected devices, regardless of where they are manufactured, would probably cost 3.2 to 6.2% more than they do today.

“Foreign governments don’t pay the cost of tariffs, Americans do – and for that reason, U.S. trade policy needs to steer clear of tariffs that act like taxes on American manufacturers and consumers…The danger we face – the unintended consequence – is that tariffs mean Americans will pay more for all the devices they use every day to access the internet,” said Gary Shapiro, CEO, and president of the CTA, an Arlington, Virginia-based trade group representing device manufacturers, software developers, and other tech companies.

What Does This Mean In Real Dollars?

Imported circuitry assemblies could increase by 9 to 23 percent, which would cost us an added $900 million to $1.8 billion in the year 2019:

“As a result higher costs, totaling $900 million to $1.8 billion more, American manufacturers of products that contain printed circuit assemblies will purchase between 6 and 12 percent less from suppliers overall. Overall, considering U.S. producer gains, increased tariff revenues, and losses incurred by consumers and the economy generally, tariffs will cost the economy anywhere between $110 million to $613 million annually.” (CTA)

Will Other Services or Solutions Be Impacted?

Another potential repercussion could be higher-priced broadband and cloud storage bills. In the list of 6,200 potential products considered for tariffs are printed circuit assemblies used by large data centers, along with networking products such as gateways, routers, and modems.

Data centers will probably have to increase their prices for customers such as Internet Service Providers (ISPs). ISPs will also be dealing with additional costs for modems and routers.

“Eventually, the higher cost will be passed down to consumers…All those products actually make up the ecosystem of the internet,” Chandler said. “You start to see a world where you could start stifling innovation and creative ideas and thinking, as well as communication just on a peer-to-peer basis…Beyond the consumer effects, smaller tech startups have concerns about how much higher prices could cause them to lay off workers or not hire new ones. That’s the only place they have to trim (their budgets),” says Sage Chandler, the CTA’s vice president of international trade.

Keep an eye out for other articles like this on Data Magic Computer Services’ Blog. It’s a great place to go to stay up-to-date on important IT topics. Here are some other good reads:

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Did You Know That October Is National Cybersecurity Awareness Month?

Online security is something that should get everyone’s attention. Threats exist all around us: ransomware, viruses, spyware, social engineering attacks and more. There’s so much you need to know to keep your personal and business information safe.   But… where do you start?

If you’re unsatisfied with your technology provider, it might be time to look for a new Dallas IT company. When making such an important decision, it’s important to consider the questions to ask before you begin evaluating Dallas IT companies.

Here are a few suggestions.

How Can I Determine What My Technology Needs Are?

Business technology is evolving at a rapid pace. New, innovative tools are becoming available nearly on a daily basis. Vendors are continually upgrading and offering new solutions meant to drive productivity, foster collaboration and spur innovation. Ask whether an IT company is prepared to assess your company’s existing systems and give you a report on the feasibility and functionality of the equipment, apps, and infrastructure. A new IT company should provide this as a first step that examines your computers, servers, phone network, wireless and wired systems, email, printers and other technologies you may use.

What Levels of Support Are Available?

With managed IT services, you sign up for support that is provided to you and your employees. These services typically include help desk support for users having trouble with networks, hardware or software; monitoring, data backup, cloud storage solutions, data, and system security, evaluation and consultation. Your company will pay a predictable, flat monthly fee for those services, with no surprises and coverage for the unexpected issues that commonly arise.

Most IT companies provide different levels of support with increasing amounts of services. Be sure you understand what the differences are between the support levels and what’s included in each.

How Are Help Desk Tickets Managed?

Helpdesk services are a great way to keep users operational economically. Whether it’s software that needs to be installed, a laptop that won’t boot up properly, or a connectivity problem, your employees need issues resolved quickly to keep working. Most help desks use a ticketing system, where user issues are submitted, logged, and assigned to a staff member to address.

Find out how the IT company handles tickets and how they can be submitted (email, phone, online portal). Know what the average response is and how requests are expedited. Most help desk requests can be handled remotely. Does the company also offer on-site support if needed? Also be clear on the types of requests the help desk handles. Is it limited to technical issues with hardware, software, and connectivity or will the help desk be able to assist with questions like, “How do I do this in Excel?”

Also, consider the amount of coverage provided. For example, will the help desk be available after regular business hours or on the weekends and holidays?

What Is Included In Your Tech Support Services?

You need to have a clear understanding of what’s included in your tech support contract and what is not covered. Some providers, for example, do not address technical issues with cell phones. Some may offer flexible options such as coverage for servers and as-needed support for PCs and software. If your company has customized software built by another company, your new IT provider may not cover or support it, so be sure to include all your tech needs. You should also ask about what’s covered if on-site support is required. Will you be charged an additional fee or be assessed for mileage and travel time to and from your location?

What Do You Monitor?

Monitoring is an essential component of managed IT services. Having experienced times looking at your network performance, activity, users, and inquiries are important for several reasons. Your managed IT partner can look at usage patterns and connectivity to see if there are adjustments that need to be made to network hubs or hotspots, for example, or if certain types of content needs to be given a higher network priority.

The second consideration is detection. A thorough monitoring solution can identify unusual behavior, patterns or inquiries and flag them, contain them and eliminate them if needed.

Do I Need Disaster Recovery Services?

Disaster recovery may not always be top of mind for your company, but it’s critically important. If there is a natural disaster that affects your physical location, the results can be devastating. With regular data backups and a carefully developed plan for responding to a natural disaster, you can accelerate your company’s recovery.

What Security Options Do You Provide?

In addition to system monitoring and disaster recovery, your IT company should provide next-generation firewall tools that track activity at the perimeter of your network, along with tools for computers and mobile devices that offer anti-spam, anti-phishing, anti-virus, anti-spyware and anti-malware protection.

When you need a thorough, comprehensive Dallas IT company, turn to Data Magic Computer Services. To learn more about our managed IT, IT consulting, computer repair and software development services, contact us today.