The semiconductor shortage is causing prices for smartwatches to increase. This is due to the semiconductor industry being unable to keep up with demand from companies like Apple and Samsung, which are both manufacturing their own semiconductors for their devices. The semiconductor shortage has also caused a decrease in the supply of other components such as memory chips that go into smartphones and tablets.
What is a semiconductor shortage?
A semiconductor shortage is a lack of semiconductors that has caused prices to increase.
Semiconductors are used in electronic devices such as smartphones, laptops, and televisions among others.
The semiconductor industry has not been able to keep up with demand from companies like Apple and Samsung who both manufacture their own semiconductors for the device they produce.
As these two giants have increased their production, the semiconductor industry cannot meet this need which causes a decrease in supply for other components such as memory chips that go into many electronics products including tablets and smartwatches.
Also, a global pandemic like COVID-19 created a huge demand for electronic devices to be made and semiconductors are a key component.
As semiconductor suppliers were unable to keep up with the demand, prices for these components increased by 11-14% in January of 2021 which has caused a price increase of smartwatches as well.
The semiconductor industry is trying its best to meet this need but it will take time before they can do so again.
Drought in Taiwan is also another reason semiconductor prices have increased.
SMIC is the biggest chip manufacturer in China and, as of last September, the United States government imposed sanctions on them.
This has caused manufacturers to use other plants such as Taiwan Semiconductor Manufacturing Company Limited (TMSC) and Samsung who are already manufacturing at their full capacity.
As a result, prices have risen for all products that depend on these chips; however, it’s worth mentioning that some companies like Foxconn might be considering investment opportunities with SMIC which may lead to future improvement in relations between US & Chinese authorities
The semiconductor shortage is causing a price increase in smartwatches
The semiconductor shortage is causing a price increase of smartwatches. A global pandemic like COVID-19 created a huge demand for electronic devices to be made and semiconductors are the key component. As semiconductor suppliers were unable to keep up with the demand, prices increased by 11-14% in January 2021 which has caused a price increase on smartwatch products as well. The semiconductor industry is doing everything it can but it will take time before semiconductors will become available again. Drought in Taiwan also contributes to this problem because that’s where most of these components come from.
Due to the pandemic, there has been an increased demand for these devices in recent months. But semiconductor suppliers have been struggling to keep up with the demand. That is the main reason that gadgets like smartwatch prices going up.
If you’re looking to buy a new smartwatch soon, it might be best to wait and see what happens with the prices before making your purchase decision.
The price of smartwatches has risen due to a shortage in the semiconductor industry. This is because people are using their smartphones less and they’re buying more inexpensive watches that use less energy. If you have any thoughts about this, please leave them below!
Wanted to Buy Smartwatch under $50? Check out my other article here.