‘We want to be able to share the pain with you’: Everpure CEO Charlie Giancarlo says firm will share the burden with customers amid rising hardware costs

Rising hardware costs have placed significant pressure on Everpure in the last six months, according to CEO Charlie Giancarlo – but the company is keen to “share the pain” and ride out the storm.

Speaking at the company’s annual Pure Accelerate conference in Las Vegas this week, Giancarlo hailed customer resilience in the wake of rising costs, noting the company is frightfully aware of the difficulties many have encountered.

“Thank you for sticking with us,” he told attendees. “I apologize for the industry as a whole. We’ll eventually get through this. Unfortunately, it’s probably going to take a little bit of time.”

Giancarlo noted that Everpure is working closely with customers, but also partners, on orders to alleviate strain and pain moving forward.

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Rising hardware costs have rocked the global tech industry in recent months, with enterprises and consumers alike feeling the pinch. According to Giancarlo, NAND prices have risen between 600-800% since October last year.

Naturally, this has resulted in price increases for customers, with the cost to produce the company’s products surging around 300%. While price increases have impacted customers, Giancarlo noted that the company is still operating at the “low end of our gross margin” rate.

“The lowest end of our gross margin rate that we’ve ever operated,” Giancarlo emphasized. “We want to be able to share the pain with you.”

If Everpure is indeed operating at the lower end of gross margin rates, then the company’s recent earnings report highlights a booming period for the data storage and management firm.

Revenue topped $1.1 billion in the first quarter of its 2027 fiscal year - its first billion-dollar quarter and a “major milestone” Giancarlo noted during the opening keynote.

“We raised later”

Notably, Giancarlo told attendees that Everpure “raised later” with regard to price increases compared to competitors.

He later doubled down on the company’s stance in response to a question during a press Q&A session, noting that increases haven’t reflected the broader price surges.

“The price that we have to pay for semiconductors, which, as I said, has gone up somewhere in the six to eight range. It’s breath taking. Our prices have gone up by far less than that, and we’re operating at a lower gross margin.”

“We’ve been following competitors’ price raises,” Giancarlo added. “They’ve been sooner than ours, and they’ve been larger than ours.”

Competitors have indeed raised prices in response to the memory crisis. In February this year, Dell Technologies hiked prices and tightened discounts in response to the crisis, per reports from Seeking Alpha.

Speaking during a fourth-quarter earnings call at the time, Dell COO Jeff Clarke revealed the firm was “compressing discounting”.

HPE, meanwhile, also adopted an “agile pricing posture” in response to rising DRAM and NAND costs.

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