Samsung is about to make everyone?s phones more expensive

[phillynews215]

Smartphones and other consumer electronics devices are becoming more expensive largely because of the memory crisis. Samsung is one of the few top memory suppliers and when it raises prices, because the others are raising prices, the impact is felt by consumers.



A new report out of South Korea claims that Samsung Electronics is now pushing for another round of price hikes for mobile DRAM and NAND flash chips.



Another 7-10% price hike being negotiated



One would think that Samsung's own mobile devices would escape these market dynamics but that couldn't be further from the truth. Samsung's Galaxy devices have also seen price hikes because the mobile division doesn't get any preferential pricing on chips from the semiconductor division.



The report claims that Samsung wants to raise prices again for mobile DRAM and NAND flash chips supplied to Apple and other global smartphone manufacturers. This will presumably include the company's own mobile division as well. Samsung is set to renegotiate supply prices with a view to seek an additional 7-10% price hike current levels, which are already at a record high.



There's no saying when the situation in the memory markets will calm down. If anything, things will likely get worse before they get better. For consumers, this means that prices of phones, tablets, smartwatches, and other devices will likely continue to trend higher before they revert, if ever.




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