Smartphone cost growth will slow down. Producers will engage in price dumping

For the past couple of years, smartphone manufacturers have been trying to get out of the crisis, to return to the previous level of production and sales of devices. The misfortunes began with the coronavirus epidemic, which was subsequently exacerbated by the lack of components and chips. In the same year, another one joined all the problems. Falling demand.

Users began to update their fleet of gadgets less and less and increased the life of devices. Among the reasons for this is the increase in the cost of smartphones. But there is another problem – the lack of innovation. Progress has slowed down, and users see no reason why they should buy new features and solutions, and also overpay for them.

According to analysts, some of the largest Chinese manufacturers of Android-smartphones were forced to reconsider their plans for this year and reduced the volume of orders for the production of 170 million devices. And this is 20% less than originally planned. Apple was also forced to reduce the production of smartphones.

The shortage of chips does not allow smartphone makers to breathe freely. He not only does not recede, but also worsens. The delivery time for a number of processors has already exceeded 6 months and there are no prerequisites that the shortage of hardware platforms will disappear before the end of the year. The only thing that manufacturers of mobile devices are trying to do is to knock out discounts on chips.

But chipmakers are extremely reluctant to reduce the cost of processors. In order to prevent the rapid growth in the cost of smartphones, manufacturers have the last argument – to reduce their margins. Consumers will only benefit from this, because manufacturers are forced to abandon the practice of high price tags and start dumping prices in order to win consumer loyalty.

A source: mydrivers

Share article

Latest videos on YouTube