When the chips are up, gadget spending might go down
Surging global prices for semiconductors are forcing even the largest, most supply-chain-resilient names in technology to raise the costs of their products. This, in turn, is expected to make consumers more cautious about spending, including during the latter part of the year, when holiday shopping traditionally increases. "Essential replacements will still happen, but consumers may trade down to…
Global prices for semiconductors are surging, forcing major technology companies to raise product costs, potentially dampening consumer spending, especially during the holiday season. Charu Chanana, a Saxo Bank strategist, expects consumers to become more cautious with discretionary purchases, such as buying new tablets or gaming consoles.
Companies like Apple and Samsung have already increased prices for some of their devices. While affluent consumers may continue purchasing premium technology, lower-income consumers may reduce spending on non-essential electronics or postpone purchases. Companies are exploring strategies like subscriptions and financing to counter prolonged replacement cycles.
However, certain markets, like the UAE, still prioritize innovation and may less affected by price hikes. The overall consumer electronics market is becoming more expensive, with varying impacts across regions and consumer segments.
Written by urgent.news from The National Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- When the chips are up, gadget spending might go down thenationalnews.com
