Handset, TV Makers Cut Output as Memory Costs Lift Smartphone Prices 35-40%
Updated
Updated · The Economic Times · Oct 30
Handset, TV Makers Cut Output as Memory Costs Lift Smartphone Prices 35-40%
3 articles · Updated · The Economic Times · Oct 30
Summary
Smartphone production is set to fall 20% as surging memory chip costs push handset prices up 35-40% and crush demand in the entry-to-mid-range market.
Television makers face the same squeeze: prices are up 20-25% on average, while memory-chip-loaded boards for 32-43-inch sets have doubled to $80 and may hit $110 by January or February.
Sony India said sales still trail last year even in value terms despite higher prices, with growth limited to 65-inch-plus TVs and pressure concentrated in 55-inch-and-below models.
Jaina Group expects some recovery next year as replacement demand returns, but for now higher component costs are forcing manufacturers to scale back output across mass-market devices.