Peaks and Valleys: An Analysis of Price Trends in Used Juniper Hardware, Post-Pandemic

Used Juniper Networks hardware prices can change rapidly

In the world of used Juniper hardware, the past six months have witnessed a remarkable shift in the pricing landscape. A steady decline in market prices has left network administrators and IT procurement specialists both intrigued and pleasantly surprised. What's driving this downward price pressure in the realm of pre-owned Juniper equipment? In this blog post, we delve into the factors behind the recent price drop, including the rebound from COVID-era chip shortages, customers' surplus buying strategies, and the current oversupply in the market, particularly in the used Juniper hardware sector.

The Aftermath of the Chip Shortages

The COVID-19 pandemic wreaked havoc on supply chains worldwide, and the tech industry was no exception. One of the key components affected was semiconductor chips, causing a severe shortage. Juniper Networks, like other hardware manufacturers, grappled with constrained supplies, increased costs and longer lead times for orders of net new hardware. This caused many organizations that might not have previously deployed used hardware to explore the secondary market to meet infrastructure demands, putting pressure on supply and causing prices to spike. In some cases, prices doubled over the span of 2020 heading into 2021. Personally, I had customers who needed hardware I could not supply and made sure to let them know that if and when equipment was available, they should act immediately if there was an immediate need.

The Surplus Surge

In response to the uncertainties of chip shortages and the increased reliance on network infrastructure due to remote work and digital transformation, many organizations opted for a pragmatic approach. They stockpiled surplus Juniper Networks hardware to ensure they had critical equipment readily available during these challenging times. This surge in demand for used Juniper equipment contributed to higher prices in the secondary market.

As the chip industry rebounds, Juniper and its competitors have regained their footing. More accessible chip supplies have resulted in shorter production lead times, and more consistency, meaning Network admins and their procurement teams no longer must look as far into the future when forecasting and planning. This meant a reversal of the feeding frenzy that occurred previously resulting in an excess supply of hardware on the market.

The Current Oversupply

With chip supplies stabilizing and companies sitting on 3–6-month surplus, demand started slowing and in April of 2023, the secondary market started self-correcting as hardware suppliers sitting on large inventory levels at higher-than-normal cost basis started looking to mitigate risk and offload equipment as prices started to trickle down. Online marketplaces like eBay saw dozens of vendors undercut one another in a race to sell their inventory before the value plummeted. By Summer, we started to see supply in the used market outstrip immediate demand resulting in an overly competitive marketplace, with vendors scrambling to offload their depreciating stock. The result? switches and routers that skyrocketed during the pandemic quickly fell back to earth and anyone still holding surplus stock slashed prices in hopes of a reset.

Deals for Days

The falling market prices of Juniper Networks hardware over the last six months represent a welcome respite for IT professionals. The overabundance of hardware has created a unique buyer's market heading into 2024. Network administrators should seize this opportunity to enhance their infrastructure while supply remains robust, and prices are low. No one can predict what 2024 will bring, but it's a buyer's market right now for hardware and as we've seen in the past the landscape can change overnight.

If you or your company want to explore current used Juniper prices and availability, reach out to us today! Whether it's EX switches for the enterprise or QFX for the datacenter, Terabit has you covered with the sales and product expertise you deserve.

If you need help making the right decision for your next deployment, at terabit Systems we’re here to help! Reach out via phone at +1 (415) 483-1190 or email and let’s talk.

October 26, 2023