‘We will not profiteer from this crisis’: Everpure CEO tells customers to brace for price hikes amid component shortages

Everpure CEO Charlie Giancarlo has warned customers to brace for price increases due to continued global semiconductor shortages.

In an open letter penned to customers, Giancarlo said the average price of Everpure products has risen roughly 70% since the beginning of 2026, describing this as a “staggering increase” given prices have decreased by around 20% per year over the last decade.

“For the third time in a decade, the technology world is enduring a ‘once-in-a-decade’ supply chain disruption,” Giancarlo wrote, pointing first to Covid and tariff-related supply chain disruptions.

With demand for AI-related components skyrocketing, the situation has escalated further, he added.

“In 2026, the extraordinary growth in demand for semiconductor components to fuel the insatiable appetite for AI has far outstripped the world’s semiconductor fabrication capacity, driving component prices to record heights,” Giancarlo said.

Everpure relies on “large amounts” of CPUs, flash storage chips, DRAM memory and “thousands of other components” to produce its data storage systems, Giancarlo noted.

The cost of semiconductor components used in Everpure products have surged between 300% and 900% since mid-2025, he noted, placing significant strain on the company.

In some instances, long-standing suppliers were unable to meet demands, which prompted the company to seek alternative sources, thereby further hiking costs.

“While overall input costs began a slow rise in the third quarter of 2025, they roughly doubled between December and January, then doubled or tripled again in February and March,” he wrote.

No light on the horizon

Giancarlo said the company expects current supply challenges to last “far longer” than the disruption caused by Covid, largely due to the current trajectory of the industry.

Chip vendors contending with limited capacity are shifting their focus toward higher margin AI components, he said.

“This has the consequence of further reducing the supply of chips necessary for other uses, thereby increasing their price”.

Rapid AI infrastructure expansion has placed significant strain on hardware manufacturers over the last year, with many struggling to keep pace. Memory costs, for example, have skyrocketed, hiking up consumer and enterprise hardware prices.

“We will not profiteer from this crisis”

Giancarlo said the data storage and management firm intends to keep price increases “significantly below” broader supply chain hikes, and will partially absorb costs passed down to customers.

“We will not profiteer from this crisis,” he said. “We signalled this commitment on our February earnings call, explicitly stating that we would be operating at the low end of our long-standing product gross margin range, partially absorbing these costs.”

Initially, the company honored its standard 60-90 day price quotes, but has now moved to quoting with 30 day expiration periods.

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