Chip manufacturer TSMC, which supplies Apple, among others, announced last month that it will raise its prices by as much as 20 percent. This is the most drastic price increase in at least 10 years. Nikkei Asia is now releasing a report stating that the price increase will also be “noticeable” among consumers.
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“The net profit margin for smartphone manufacturers is only 5 to 10 percent. The rising chip costs will therefore force all players in the industry to release more expensive models next year. They will focus less on ‘cheaper’ phones,” an analyst said in the report.
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TSMC wants to put an end to the ‘double booking phenomenon’ with the price increase. We speak of double booking when a company places more orders than it needs. This way they can ensure that the production line does not come to a standstill. In this case, however, it causes an increase in the chip shortage.
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The lack of chips is due to the corona pandemic. This caused the demand for electronics to rise sharply, partly as a result of increased working from home. The car sector worldwide is also affected by the shortage: modern cars contain countless chips.
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Apple itself has not yet commented on the news.
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