Expectations of higher prices for iPhones and Playstation devices

A number of experts have warned that the prices of PlayStation and iPhone devices may rise this year due to a shortage of semiconductors, caused by a combination of factors, including the booming demand for electronics, the confusion that afflicted the supply chains due to the Covid-19 pandemic and the trade war.

As the lockdown measures taken due to the pandemic, consumers are turning to computers, tablets or game consoles powered by chips. In parallel, the technology giant Huawei, in light of the worsening trade war between China and the United States, has stockpiled semiconductors last year, which has increased pressure on the amount available for supply.

These market tensions jumped to the fore as carmakers sought more semiconductors, realizing that chip manufacturers were prioritizing consumer electronics. The car industry is to date the most prominent victim of the chip shortage, as giant companies, including Ford and Volkswagen, have been forced to cut production, but other sectors have also been affected.

The CEO of Strategy Analytics, a consultancy, Neil Mauston, noted that “the Coronavirus storm is coupled with the rise in stocks due to the trade war and the shift in working from a distance”, which are the factors that “cause a shortage of semiconductors.”

He expected that “everything that contains a chip will be affected, such as cars, smartphones, game consoles, tablets and laptops.” He suggested that «the numbers of produced quantities of electronic goods and vehicles will decrease, and that their prices will rise during 2021.»


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