Due to rising demand of chipsets globally, as well as low supply, smartphones may get more expensive in the second quarter of 2021

Qualcomm is one of the worlds leading manufacturers of SoCs and semiconductors

Recently, chipsets have experienced a huge shortage and also, higher demand, in effect since 2020 due to the pandemic. Many people are now staying at home as advised by many governments and medical professionals worldwide, and thus home devices like computers, gaming consoles and smartphones suddenly has spiked in demands.

This sudden rise in demand will cause chipsets, graphics cards and processors to rise in prices and is expected to be tripled by Q2 2021. SSDs (Solid State Drives) and HDDs (Hard Disk Drives) are also affected.

The reason for this unbalanced of supply and demand is due to many factories temporarily shutting down due to the COVID-19 pandemic, and as mentioned earlier, many people now work and play at home, and many manufacturers may not have been expecting the demand to reach this high, and so could not keep up with the manufacturing, causing delays or reduced number of phones, processors or graphics cards being manufactured.

Due to online classes, laptops and tablets have spiked in demand, with over 200 million shipments in early 2020 alone.

Although, despite this, manufacturers like Realme and Xiaomi still managed to release bang-for-buck phones, and new chipsets such as the Snapdragon 678 and Snapdragon 780G were manufactured this year.

Sources: GizGuide, GizChina