Smartphones, a sharp increase in prices expected by the end of the year: here’s the reason

Soon we will see a significant growth in smartphone prices: here’s why

The market of smartphones it has never been as prosperous as it is now. Always full of new features and increasingly advanced solutions, modern smartphones are increasingly updated and feature-rich and able to satisfy the most common user needs. It is also true that the race for technology to make smartphones ever more powerful has led i electronics giants to make substantial investments to be increasingly competitive.

All this is leading to an increase in the price threshold for end users, especially as regards the latest generation models. In recent weeks, price increases have not only affected top of the line, even the most notoriously cheaper models and it seems that the situation could even get worse in the second part of 2024.

Smartphones, you will pay more: here’s the reason

The introduction of more advanced software and hardware is forcing major cell phone brands to increase prices exponentially. Among other things, the release of the new Snapdragon 8 Gen4 chip launched by Qualcomm is scheduled for October, a real treat for electronics enthusiasts.

It will be there Xiaomithe first brand to use the new chip, but soon also the rivals of Oppo, Samsung and OnePlus they will do the same with the creation of new, increasingly advanced chips. The new technology costs on average 25-30 percent more, an increase that will also affect the final price of the smartphone. It is estimated, for example, that Snapdragon 8 Gen3 could cost around 190-200 dollars, while the new version will have a price of around 250 dollars.

All this will inevitably generate an astonishing increase in the prices of new smartphones but will also affect old ones, also because the telephony giants will do everything they can to try to recoup the substantial investments made in recent years. The new chip will cost a lot more mainly because of the node N3E from TSMC, more developed and expensive. This is an implementation that will also affect the performance of the Snapdragon 8 Gen4 compared to the previous model, obviously all at a higher price that the end consumer will have to bear.

Price increase expected by the end of the year

The new chips that will be the basis of the Android technology of high-end smartphones, will lead to price increases of between 5 and 10 percent for late 2024 and early 2025 models. The new chip will have an inevitable impact on all the prices of other products, due to the desperation of many consumers.