The reputable analytical agency Counterpoint analyzed the current trend of growth in the cost of microcircuits due to the worldwide shortage of semiconductors and calculated how much the price of smartphones will rise due to the increased cost of these components for them. The results differ depending on the class of devices – budget models and mid-range models will rise in price more than flagships.
- To this topic: Rise in price of electronics and infringement of small manufacturers – what threatens the global shortage of microcircuits
According to Counterpoint, if chips in smartphones rise in price (and these are not only application processors, but also modems, and power chips, and everything like that), then the cost of gadgets will increase as follows (excluding any other possible price increases):
| The percentage of chips in smartphones that can rise in price | 100% | 80% | 50% |
| High-end smartphones (starting at $ 600) | 12% | 9% | 5% |
| Mid-budget smartphones ($ 300-450) | 14% | 10% | 6% |
| Ultra-budget smartphones (under $ 150) | 16% | 11% | 8% |
It is expected that the lower the class of the device, the more it will rise in price due to the shortage of chipsets – this is due to the fact that cheaper smartphones use chips with a smaller technical process, and the manufacturers of these components (the so-called “second tier” suppliers) have begun to raise prices for them back in 2020. Compared to last year, now low-end category chipsets have risen by 25-40%, and by 2022 their prices are expected to increase by 10-20%. At the same time, the cost of 7-nanometer microcircuits remained (expected to grow by 5% next year), and the price of 5-nanometer chipsets has dropped altogether (growth is not predicted).
Counterpoint analysts are convinced that the rise in the cost of microcircuits is due not only to the shortage of semiconductors – manufacturers are applying new pricing strategies, including to protect against short-term and long-term uncertainties, such as the effect of double booking (large-scale cancellation of orders), supply chain disruptions (increase in cost delivery) and geopolitical complexities.
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