According to Digitimes, PC makers are expected to raise retail prices when new models equipped with revised Kaby Lake processors are launched in the third quarter of 2017.

Intel is planning to release upgraded Kaby Lake processors in the third quarter and PC vendors are expected to release new products with increased prices to target back-to-school demand.

Lenovo COO Gianfranco Lanci said that PC part shortages were not getting better and the company will raise its PC prices to reflect some of the increased costs.

Asustek’s CEO Jerry Shen said his outfit’s biggest challenges in 2017 were exchange rate fluctuations and component price hikes. To decrease the impact from the part pricing, Asustek is also planning to increase the prices for its new products.

The part shortages will put more pressure on small PC vendors, as big vendors placing bigger amounts of component orders will be given priority by their suppliers.