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Smartphones face price increases after many components become more expensive

After the chip production went through a huge shock during the pandemic, companies have been trying to regenerate in the recent period. This worked so well that the massive shortage was actually replaced by overproduction, but now the big manufacturers – led by Samsung – are trying to normalize the situation. And this definitely has a price-inflating effect.

At the same time, there were news that the price of SSD and memory modules will rise due to the increase in the price of DRAM and NAND Flash units, and that the image sensors built into cameras may also cost more in the future.

We dealt with the price change of memory chips in another news item. Now we will go around the latest information about the price increase of CMOS sensors. An industry source revealed that behind the scenes, Samsung had already warned its hardware partners and customers that it would raise the price of components. Probably, in parallel, he will gradually begin to reduce the current overproduction to a level that he considers healthy.

Officially, nothing can be known, but according to the report, the price of some components may increase by up to 25-30 percent in the coming months. Samsung is one of the world’s largest sensor manufacturers, after Sony, it sells the most image sensors globally, and its various solutions are used in almost every smartphone. Since an average mobile already has four cameras, the chances are always pretty good. Allegedly, Samsung decided to raise the price of CMOS units because it feels that the mobile market is stabilizing.

It is not surprising that such news comes in connection with Samsung, as the South Korean team has been in a very difficult situation in recent months. It continuously incurred heavy losses from chip production, as it was forced to sell its products at depressed prices. And according to the signs, the situation did not really want to normalize on its own, so the company can intervene as soon as it has the opportunity to do so mostly painlessly.

The current situation may result not only in the increase in the price of mobile phones, but also in the “reversal” of development. Recently, even in the middle category, you could find mobiles with 12 GB of RAM and a 200 megapixel main camera. However, in the light of recent news, there is every chance that the next-generation devices can be somewhat more restrained on this front, if the manufacturers do not want to push the prices higher.

In addition to the increase in general component prices, new generation mobile phones may also become more expensive due to the fact that it will be more expensive to purchase new system chips. This may not even be spectacular this year, but in the next generation, when everyone switches to TSMC’s 3 nm processes. Apple is currently the only one using 3 nm, and it certainly hurts them. Due to the recent manufacturing process, the Apple A17 Pro is said to be by far the most expensive in the history of Apple A series chips. According to earlier sources, it could cost the company up to $130 a piece.

Taking into account the current situation, the only way to avoid device price increases is if the manufacturers start making a profit. What are the chances of that? Well, let everyone decide for themselves what they think about this question. By the way, it is a fact that Apple can work with a smaller profit for the iPhone 15 series than before.

2023-12-01 05:13:42
#Smartphones #face #price #increases #components #expensive

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