Up to 20% increase in smartphone prices expected in 2022

According to Counterpoint Research’s report, smartphone prices will increase by 10-20% worldwide this year. The main reasons for the increase in prices are shown as semiconductor shortage, disruption of supply chains due to the epidemic and inflation.

The report focuses on the fact that mobile device prices have increased significantly over the past year. According to the three-quarter results, the average cost of a smartphone in the world market was $308. That’s $21 more than in 2020. Analysts state that the prices of smartphones have increased due to the shortage of chips. In 2022, the chip shortage problem will not be resolved, and therefore, there is no chance of prices falling.

TSMC to raise chip prices

The biggest increase in smartphone prices in 2021 was recorded in the Middle East and African markets. The price of mobile devices increased by 17.4% in these regions, which was due to the 8% increase in inflation triggered by the pandemic. On the other hand, smartphone prices increased the least in Southeast Asia, where the increase in prices was recorded as only 2%.

Since 2020, the cost of semiconductor components in the global market has increased by 25-40%. In the near future, Taiwanese semiconductor foundry TSMC plans to increase its selling prices for shipped products. TSMC is the world’s largest semiconductor manufacturer. The company controls more than 50% of the microchip contract manufacturing market. In parallel with all these, chip prices will rise again around the world.