Global chip shortage could make phones costlier in 2022
In 2021, the global chip shortage has had a significant impact on the electronics industry with several OEMs failing to satisfy demand.
However, this situation has the potential to worsen, particularly for consumers. According to a recent report by Nikkei, if production fees rise next year, the price of chipsets, and hence smartphones, might rise even further.
Taiwanese semiconductor giant TSMC, which manufactures chipsets used by Apple, Qualcomm, and Nvidia, plans to raise its production fees by up to 20% in 2022.
According to reports, the surge is attributable to a variety of variables, including high demand and logistics. Other chipmakers are feeling the heat as well.
Impact on consumer gadgets
It is reported that Qualcomm’s and MediaTek’s cost of sales increased by 60% and 64%, respectively, between October 2020 and June 2021.
This increased cost, along with the global chip shortage, will almost certainly have a knock-on impact on customers, who may have to pay even more for devices.
Smartphone and computer manufacturers that rely on these chipmakers’ products will almost certainly have to raise prices to make up for lost revenue.
Price increases may also have an impact on the product ranges of smartphone manufacturers. According to Nikkei, citing a Counterpoint analyst, firms may offer more high-end items to counter their losses. This means that budget-conscious buyers will have fewer new affordable devices to choose from.
Whether OEMs would be prepared to incur a bigger hit to protect customers is unknown. From the looks of it, be prepared to shed a few extra bucks in 2022 for that shiny new flagship smartphone!