Global chip shortage could affect gadget prices in 2022

The global chip shortage is expected to affect the prices and availability of mobile phones and computers, especially next year, according to brands and analysts.

But it is less clear if the component supply issue has affected South Korean electronics giant Samsung's new foldable phones, which were officially launched here last Friday.

Some consumers who ordered the new Galaxy Z Fold3 and Galaxy Z Flip3 smartphones from Samsung's online store had their gadget deliveries delayed by a week or more. Samsung Electronics Singapore attributed this to high local and global demand for the phones. But when asked, it did not address the question of whether the delays were related to the worldwide chip shortage.

Mr Glenn O'Donnell, research director at market research firm Forrester Research, said that chip supply constraints result in higher prices that either need to be absorbed by the manufacturer or are passed on to the consumer.

"In short-duration disruptions, the prior is possible, but this problem is here for the next two years," he told The Straits Times. "Thus, prices for smartphones and just about anything else are already rising. We expect these increases to exceed 10 per cent by the year end and rise even more through 2022."

Major chipmaker Taiwan Semiconductor Manufacturing Co was reportedly planning a chip price hike that could cause prices of smartphones and computers to rise next year, financial news outlet Nikkei Asia reported last week.

Apple and Samsung had earlier warned of component shortages that could affect shipments. But it was unclear if this would also impact the rumoured iPhone 13, expected to be unveiled on Wednesday, Singapore time.

Still, market research firm TrendForce said revenue growth in "peripheral services" is expected for Apple. So the base price of the upcoming iPhone could be "relatively on a par" with last year's iPhone 12, HardwareZone reported.

Said Forrester's Mr O'Donnell: "I doubt the chip issues will delay the introduction of iPhone 13, but it will certainly impact availability."

Firms such as Apple and Samsung have also stocked up on chips, so the phone market could have been partly shielded from the component crunch, CNBC reported.

Mr O'Donnell said chip hoarding helps for a time but prolonged shortage makes this practice far less effective. He added: "Brand-new product designs usually require brand-new chip designs. You can't hoard chips that don't yet exist."

For Samsung's Fold3 and Flip3, any impact from the chip shortage could also be masked because the phones cost less than previous versions. For instance, last year's Fold2 sold for nearly $2,900, higher than the Fold3's $2,400 to $2,500 price tag.