Tengrinews.kz — Following a shortage of memory chips, Chinese smartphone manufacturers are facing a new challenge: a sharp spike in display costs. Experts believe this could lead to another round of price hikes for new phones, citing the Huawei Central.
According to TheElec, the surge is driven by the rising cost of chemical components used in screen production. Analysts at Sigmaintell estimate that the price of specialized display adhesives alone jumped by 15 percent in the second quarter of this year.
Key polymers, including PET and PVA, have also become more expensive. These materials are used to manufacture polarizing films—a critical component of modern screens.
Sigmaintell estimates that with raw material costs rising by 70–80 percent, the manufacturing cost of these films has increased significantly. Consequently, Chinese display manufacturers are already demanding approximately 10 percent more from smartphone brands for finished panels.
What this means for consumers
Rising production costs will likely impact the retail price of new smartphones. It remains unclear how significantly prices will change for consumers, including those in Kazakhstan.
Why electronics prices are rising
Apple has already raised prices on several MacBook and iPad models, among other devices. The company attributed the hike to the rising cost of memory chips and storage drives. Depending on the model, prices have increased by $100–$300.
One major factor is the redistribution of memory supplies. Manufacturers are increasingly prioritizing large orders for the artificial intelligence industry, particularly for Nvidia data centers. As a result, smartphone and laptop manufacturers are finding it harder to source components at previous price points.
Read also: Is the era of "cheap" iPhones over? How much Apple gadgets will cost in tenge