Nearly two weeks ago, Xiaomi raised the price of the Redmi Note 10 series.
Three days ago, the realm of climbing the price of four smartphones while Micromax also raised the price of smartphones today.
The increase in the price of this smartphone might not be significant but show trends: the price of smartphones continues to increase.
We see why there is a smartphone price increase.
Lack of global smartphone components.
Smartphone shipping has grown and subsequently expected to grow in 2021, there has been a lack of components.
According to a report by Canalys, “as the main component, such as chipsets and memory, price increases, smartphone vendors must decide whether to absorb the costs or forward them to consumers.” It was in July and since then the cost seems to have been forwarded to consumers.
Most price increases have been in the budget segment or entry-level.
According to Canalys, there are major obstacles around the LTE chipset, which has created challenges in low-end markets.
Other research companies Gartner believes that global chip deficiency has not had an impact on the smartphone industry as a demand and supply balance fulfilled.
“This can change in the upcoming quarter and produce an increase in the average selling price of smartphones globally,” said the company.
The increase in the price of this year’s smartphone component, Xu Qi, vice president, Realme also warned about the increase in smartphone prices.
Apart from the lack of 4G processors, the price of components for charting adapters, memory chipsets and others have risen.
Qi said that this price increase has added at least a 10% increase in the cost of making a smartphone, which will eventually reach the final consumer.
Xiaomi’s President Xang Wiang in March has warned about the same thing.
He said that the company will try to optimize costs but only at some extent and beyond it will reach consumers.
Low-cost handsets are more affected because they are quite low margins.
5G: Another reason for the price of riseas more countries hugging 5G networks and 5G cellphones getting popularity, the cost of smartphones is expected to rise further.
With users who want to migrate to devices that support 5G, there must be an increase in demand for this smartphone.
As we have seen with a 5G smartphone budget in India – although technology is not available – the price is on the higher side.
After 5G is being launched in India, there will be greater requests and people have to pay extra for the technology.