What is the pricing trend of consumer electronics?

Jul 02,2021

 

Prices for chip supplies and key materials are snowballing as the chip industry rushes to meet growing demand and fill supplying shortage, so big chip makers around the world are considering raising fees for computers, security items, and other electronics products. Industry sources said that the price of electronic products is likely to continue to rise


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Contract prices for computer memory have risen about 34 per cent since the start of last year, according to TrendForce, a Taiwan-based research firm. As the home quarantine during the epidemic increased the number of computer game players, there was also a boom in used Nvidia graphics cards, which can be sold for more than the original price. Computer and other electronics prices rose 2.5 per cent in May from a year earlier, the biggest increase in more than a decade, according to US government data, and were also boosted by a surge in energy prices, which rose 5 per cent in May.

 

However, price increases within the chip industry have not been consistent. On average, global chip prices have barely budged since the start of last year, according to industry data, although some segments, including mobile phones and consumer electronics chips, have risen. Dale Ford, an analyst with the electronic components industry association (ECIA) , said that in some cases, the price data did not reflect recent cost increases across the semiconductor supply chain. Prices also tend to be set in longer-term contracts, he said, and the effect is delayed when prices adjust to market pressures. He also said that the cost of raw materials is not temporary, so the price increases may be sustained for some time.


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