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Over the years, our smartphones have steadily increased in price. The price increase could be attributed to many factors, like material shortages, complexity in components, inflation, or just pure greed.
The bad news is that it looks like prices won’t be going back down anytime soon. In fact, it might actually go up. This is according to a report from Link News who cited a Bloomberg report in which it claims that Samsung is apparently negotiating with their clients who use the company’s chipset manufacturing services.
This negotiation could potentially see the price of chipset production increase. Now, before we start blaming Samsung, it seems that Samsung isn’t alone in this. Apparently there is an industry-wide effort to increase the price for contract-based chip manufacturing, and to be honest it shouldn’t be that surprising seeing as there is way more demand than supply at the moment.
What this means for the future is that if you thought flagship phones were already expensive, it could get even more costly in the future. The report goes on to claim that Samsung has already managed to finish negotiations with some of their customers and are continuing discussions with the others.
Samsung is currently the world’s second-largest chip contract manufacturer behind TSMC, so it’s safe to say that a price increase by Samsung could affect many handsets down the road.
Source: SamMobile
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