This music will be eternal – the rise in prices for electronics. Manufacturers are not ready to be Robin Hoods to give away their smartphones at a loss. Of course, it’s easier to say that smartphone companies are very greedy guys and that is why they tirelessly increase the cost of their devices in order to “fill” their pockets more and more.
But, alas, component manufacturers are also pushing towards the inevitable rise in prices for electronics. The market deficit also contributes to the inflation. The rise in prices will continue and in the second half of this year; we will have to get used to the new price tags for smartphones. Vice President of Realme Xu Qi warned about this to a wide audience.
In an interview, he said that at the beginning of the year there was an acute shortage of 5G chips; among which the Snapdragon 888 and Snapdragon 870 platforms were in short supply. There was also a shortage of 4G processors.
In addition, the top manager of Realme noted that there was an increase in prices for memory, components for charging adapters and other components. On average, they added 10% to the price. All this will inevitably affect the cost of final products – it will increase. 5G smartphones, which are gaining popularity, will also provoke a rise in prices. Users in a number of countries have already begun active migration to devices with support for fifth-generation networks. The growth in demand for such models will also spur an increase in their cost.
IDC: Semiconductor Manufacturing Revenue Grows 10.8% In 2020 Despite Market Deficit
The semiconductor market showed strong performance in 2020, despite the restrictions imposed by the coronavirus pandemic. This conclusion was made by analysts of the International Data Corporation (IDC), who calculated that the total revenue of industry manufacturers amounted to $ 464 billion in the reporting period, which indicates an increase of 10.8% compared to 2019.
The market segment related to the production of chips for computing systems such as computers and servers grew by 17.3% year-on-year in 2020 to $ 160 billion. During the entire reporting period, there was a steady growth in the production of chips for mobile devices. “ Smartphone shipments fell more than 10% in 2020, but mobile chip revenues grew 9.1% thanks to the transition to more expensive 5G components, larger memory chips, etc. For chip makers, 2021 will be especially important as smartphones with 5G support will account for 34% of total devices shipped, and semiconductors for 5G smartphones will account for almost two-thirds of revenue in this segment”- said Phil Solis, an analyst at IDC. IDC predicts that revenue in the market segment related to the production of chips for mobile devices will increase by 23.3% in 2021 to $ 147 billion.
The consumer chip market segment rebounded in 2020. Strong demand for game consoles, tablets, headphones, smartwatches and other devices helped drive 7.7% year-on-year growth to $ 60 billion.
Analysts predict that the global semiconductor market will reach $ 522 billion in 2021; which means an increase of 12.5% compared to 2020. IDC expects strong growth in semiconductor products for the consumer segment, computing, fifth generation (5G) networks and the automotive industry. The semiconductor shortage is expected to persist throughout 2021.