Experts see smartphones inflation in Russia due to lack of chips

MOSCOW, Jul 29 (PRIME) -- A lack of microchips continues to impact global production of smartphones, that is why prices for the devices keep growing and can rise by about 10% more in 2020 in light of high demand, telecommunication market experts told PRIME on Thursday.

“There is a lack of components, it impacts the production in the entire world. As to growth of the prices, they have already increased by 35% this year, and are likely to inflate by another 10% (in the autumn),” Mobile Research Group analyst Eldar Murtazin said.

Director of the robotic science faculty at the Synergy university Andrei Volostnov said that another factor for inflation is an imbalance of supply and demand with demand exceeding supply by 10–30% on the back of wrong forecasting by the producers.

“The prices (for mobile devices) will grow by 5–8%. We are speaking about the market’s leaders including Samsung, Apple, and Huawei. Minor market players will have to reduce their supply volumes and cancel the launch of new models. Simultaneously, they will raise prices for their devices by up to 30%,” Volostnov said.

CEO of smart home systems operator Sibling Mikhail Shklyar said that pre-pandemic supplies of microchips can recover in 18–24 months.

End