The shortcomings of the ongoing chip have made a smartphone expensive.
Brands like Realme, Xiaomi and others have a few prices from their smartphones.
A report by Nikkei Asia now suggests that the main supplier of TSMC – Apple – is set to climb the price of the chip.
“The price of chips – and the electronic device they power – is on track to rise to 2022 because the world’s largest chipmaker contract joins its rival in increasing production costs,” said the report.
Apple is not the only big client owned by TSMC as people like Nvidia and Qualcomm also work with giant manufacturing chips.
TSMC, according to the report, brings the biggest price increase in more than 10 years.
This, the company does to close the increase in production costs.
Apart from this, many companies “double books” – order more than they need – which is a problem for TSMC.
The report said that when the company made an order twice it became difficult to get components.
What he did did make another vendor to get a chip.
TSMC also doesn’t recognize the actual picture of the chip request.
Price increases can limit this practice, according to the report.
How will it affect the price of Apple products? It is possible that Apple can take a hit and not forward price increases to customers.
But it can be very good, because per analyst quoted in the Nikkei report.
An analyst cited in the report said, “” The net profit margin for smartphone makers does not include Apple is only around 5% to 10%.
In that case, the cost of increasing chips will definitely encourage all industrial players to slide higher the final handset model for next year to compensate for the impact of costs rather than focusing on midrange or lower class cellphones.
“TSMC makes chips for iPhone, iPad and a new Mac model for Apple.
Although it is impossible that the price increase will come in 2021, it can happen next year, according to the report.