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Get ready! Smartphones Will Be Rare & Prices Rise, Why?

Jakarta, CNBC Indonesia The global chip deficit disaster or so-called chipmagedon continues to spread. After previously attacking the automotive industry, this time the chip shortage has also hit the smartphone industry smartphone. Hthis will result in higher phone prices and deeper shortages for models smartphone certain.

Quotes CNBC International, this is starting to complain some cellphone manufacturers. On Tuesday (27/7/2021), Apple CEO Tim Cook signaled that this chip problem would disrupt sales of the iPhone and other products such as the iPad.

“The drawback is not in the high-powered processors that Apple manufactures for its devices, but the chips for everyday functions like turning on the phone screen and decoding audio,” Cook said.

In addition to Apple, HMD, which launched several smartphone Nokia warns the shortage of semiconductors could be a challenge for smaller makers of high-end devices.

“We see for sure there is overall tightness” in the supply chain, Florian Seiche, CEO of HMD, told CNBC.

“We may see a certain imbalance in the market,” he said, adding that demand for low-end models was quite high.

Analysts predict that the lack of chip in the smartphone industry is affected by the improvement in the demand for chips in the automotive industry. This led to a massive struggle between the two industries.

“Now that the auto and other sectors are catching up and starting to reclaim the capacity they left behind, there is intense competition for semiconductor supply,” said Syed Alam, semiconductor analyst at Accenture.

“This has created supply pressure for smartphone chips.”

In addition, several mobile phone manufacturers are also currently faced with recovering demand smartphone global. Even data compiled from the IT company Gartner states that the demand for smartphones has grown by 26% in the first quarter of 2021.

With this situation, the analyst added that consumers themselves will feel a significant increase in prices. In addition, there will be a risk of lack of specifications for the purchased device.

“The possible outcome here is higher phone prices and deeper shortages for certain models,” said Forrester researcher O’Donnell.

“In Apple’s case, you might be able to get a high-end iPhone 12, but not a low-end iPhone XS. For other smartphone makers like Samsung, LG, and Chinese brands like Xiaomi and Huawei all will find it difficult,” he added.

[Gambas:Video CNBC]

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