Price of smartphone will increase
There is bad news for smartphone buyers in India. Smartphone companies can make low end i.e. budget phones expensive. According to a recent report, the price of chips may increase, due to which smartphones may become expensive. The demand for chips is going to increase due to the growth of AI data center market. These days the demand for mid and budget smartphones is also decreasing. Users are shifting to premium smartphones because of good features.
Budget smartphones will be expensive!
According to the new report of research firm TrendForce, it is going to affect not only India but globally. Chip manufacturing companies are making processors in small quantities for low budget phones, due to which its impact on the supply chain will be visible. Most companies are making high bandwidth memory chips. Supply chain tracking company TrendForce said that the price of memory chips used in mid and budget smartphones is likely to increase. The supply of these memory chips is decreasing, due to which the fulfillment of its demand will be affected.
smartphone chip price
These days most companies are focusing on AI features in premium phones. Due to the increasing demand for memory chips in the AI datacenter market, companies are making high bandwidth memory cards. According to the report, the price of LPDDR4X RAM may increase by 10 percent in the fourth quarter of the year, which is going to affect the overall cost of the smartphone.
Demand for memory cards may increase
In view of the supply of high-end memory, companies are reducing the production of standard memory chips. In such a situation, the demand for memory chips for low budget smartphones may increase. The margin is kept highest for the chips used in smartphones. According to Counterpoint Research, most of the chip making companies are focusing on High Bandwidth Memory (HBM) chips.
OEM i.e. smartphone manufacturing companies have also planned to transfer the shortage and increasing cost of memory cards to the customers. Recently, Lu Weibing, President of Chinese brand Xiaomi, has also confirmed on the social media platform Weibo that the pressure of rising prices of memory chips will be shifted to the customers. In such a situation, smartphone prices are sure to increase.
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