Many devices do use chips manufactured by Samsung. Wherever these chips are developed, by the South Korean giant itself or, for example, by Qualcomm, in some cases Samsung is indispensable. For unwitting dependence on the chip manufacturer, electronics and car manufacturers will sooner or later have to pay. And that moment is near. Smartphone chips cost will increase.
It was reported that Samsung plans to raise the cost of its services for the production of chips in the second half of this year by 15-20%. Most of all, chips created using mature technical processes will rise in price. At the moment, the company is negotiating with customers to increase the cost of services, some of them have already reached an agreement.
The increase in the price of chips made by Samsung will affect manufacturers of smartphones, game consoles, tablets and automotive systems. Samsung itself is proudly silent and does not comment on this information; leaving it at the mercy of analysts, experts and insiders. Those, in turn, are preparing consumers for an increase in the cost of the final product, equipment and cars will rise in price, and they will have to pay more. They will grumble, but they will reconcile. True, due to the increase in cost, and the almost inevitable increase in prices for these products, they will be less willing to buy.
Smartphones price increase: it’s due to the rise in the cost of Samsung’s chips
To be fair, it should be said that against the background of the crisis, the shortage of components; and problems due to the coronavirus, the cost of Samsung products has remained stable for a long time. Unlike TSMC, the South Korean giant, until recently; found reserves in order not to increase the cost of services and chipsets. But the inevitable rise in the cost of materials, new outbreaks of COVID-19; and the unstable situation in the market eventually forced it to revise prices for semiconductor production.
Samsung has recently showed not only commercials but also working prototypes of next-generation smartphones.
Ross Young, founder of research firms Display Supply Chain Consultants and DisplaySearch; also visited the show and posted photos of Samsung’s pop-up smartphone prototypes.
Samsung refers to this solution as the “Vertical Retractable Design” as when folded; the device is a compact smartphone with an AMOLED screen in the classic 16:9 aspect ratio.
The enlarged screen may be more convenient when viewing a news feed or article; or when watching movies with a theatrical aspect ratio. In addition, when folded, the device fits easily into a pocket and is thinner than foldable smartphones.