Recently, as it is predicted that Apple’s iPhone 14 series and Samsung Electronics’ Galaxy S22 series will be raised by about $100 (about 118,000 won) from their predecessors, the rumors of a smartphone price increase are becoming a reality. This is interpreted as the effect of a rise in the price of chip (IC) for major smartphones due to a prolonged supply shortage of semiconductors.
According to a number of IT media such as Phone Arena, IT tipster LeaksApplePro predicted that the price of ‘iPhone 14 Pro’ and ‘iPhone 14 Pro Max’, which are high-end models of the iPhone 14 series, would rise by about $100. Therefore, it is highly probable that the price will be △iPhone 14 Pro $1,99 (1.35 million won) △ iPhone 14 Pro Max $1199 (1423,800 won).
On the other hand, the iPhone 14 model is expected to maintain the same price of $799 (949,000 won) as its predecessor. The iPhone 14 series is expected to be released this fall.
Samsung Electronics’ flagship smartphone, the Galaxy S22 series, is also expected to have a price increase of about $100 compared to the previous Galaxy S21 series. The expected price is △Galaxy S22 $899 (1,068,300) △Galaxy S22+ $1,99 (1.36 million) △Galaxy S22 Ultra $1,299 (1,543,700). It is known that the Galaxy S22 series will be released through Unpacked next month.
When the Galaxy S21 was released, the price started at $799 (949,000 won), the Galaxy S21+ was $999 (1187,000 won), and the highest price, the Galaxy S21 Ultra, was $1,199 (1425,000 won). At the time of launch, the Galaxy S21 had a slightly lower price than its predecessor.
■ IC price rise… Leading to an increase in smartphone prices
The increase in smartphone prices is largely due to the increase in the price of ICs, a major component. Due to the shortage of semiconductor foundries that started at the end of 2020, prices for most semiconductors, not just smartphones, have increased.
According to market research firm Counterpoint, the price of display driver driver chip (DDIC) and TDDI increased by 30-40% compared to the previous year, showing the highest increase in smartphone semiconductors last year. It is investigated that the price of power management semiconductor (PMIC) increased by 20-40%, CMOS image sensor (CIS) price increased by 10-15%, and 4G application processor (AP) increased by more than 5%.
Chip price hikes lead to higher smartphone costs. Counterpoint predicts that premium smartphones ($600 and above) will increase by 5-12% this year, mid-end smartphones ($300-450) will increase by 8-16%, and low-end smartphones ($150 and below) will increase by 8-16%. predicted.
“The supply and demand situation for PMIC and 4G APs is the most serious, and it is unlikely that the parts issue will be resolved until the first half of this year,” said Lee Yun-seong, a researcher at Counterpoint.
He further explained, “Smartphone manufacturers have various scenarios, such as burdening consumers with the burden of rising costs, bearing margins on their own without reflecting them in distribution, or lowering major component specifications to maintain margins.” “However, we will not be able to lower the specifications for product competition,” Lee said. “It will be inevitable that smartphone prices will rise.”