According to the Nikkei Asia website, TSMC intends to increase the price of its chips by 20% by 2022 . It should be noted that TSMC is the largest manufacturer of mobile chips and companies such as Apple, Qualcomm and Nvidia are cooperating with it. Among the reasons for this price increase are high demand and challenges related to smaller production processes.
It is said that between October 2020 and June 2021, the manufacturing costs of MediaTek and Qualcomm chips increased by 60% and 64%, respectively. Is. This increase in costs, along with a decrease in supply, will increase the pressure on buyers. A Counterpoint researcher has said that companies are likely to increase the number of high-end handsets to offset these costs. This means that fewer mid-range and low-end handsets are likely to hit the market next year.
It should be noted that in 2021, important companies reduced the price of their phones. For example, the Galaxy S21 series phones were available to users at a lower price than the previous generation. The cheapest Galaxy S20 was priced at $ 999 in the US market, but the base price of the Galaxy S21 reached $ 799. Given the news, we should probably not expect this trend to continue for the Galaxy S22. Google has also announced that the Pixel 6 Pro will be "expensive".
It is not yet clear how much the increase in chipset costs will affect the price of mobile phones. On the other hand, we are not aware of the companies' approach to this issue, and some of them may decide to keep the price of these phones constant in exchange for lower profits. In any case, we should expect an increase in the price of mobile phones next year.
- Everything you need to know about the mobile chipset (SoC)
Source: Android Authority