Over the years, the price of smartphones has been getting higher and higher. The price increase can be due to many factors, such as shortage of raw materials, increasingly complex components, inflation or simply firms wanting more profit.
The bad news is that it doesn’t seem likely that prices will rise for whatever reason, but will not fall again. In fact, the price of a smartphone is actually still on an upward trend.
According to Bloomberg, Samsung is negotiating with partners to use the company’s chipset manufacturing services, the goal of this negotiation is to be able to increase the price of chip production by 15-20%. However, before we criticize Samsung, Bloomberg also notes that this is an industry-wide trend. Chip production contracts from all companies are increasingly expensive, as demand is now outstripping supply.
This will likely push the price of smartphones even higher in the future, especially for flagships, which are already very expensive. The Bloomberg report further confirms that Samsung has completed negotiations with some of its partners and is continuing to discuss with others.
Samsung is currently the world’s second-largest contract chipmaker after TSMC, so Samsung’s price hike could affect many smartphones in the future.