Global shortage in computer chips 'reaches crisis point'
Consumers are facing price rises and shortages of products like TVs and mobile phones as a global shortage in semiconductors grows. The shortage in chips, the “brain” within every electronic device in the world, has been steadily worsening since last year. Initially the problem was only a temporary delay in supplies as factories shut down when the coronavirus pandemic first hit. However, although production is back to normal, a new surge in demand driven by changing habits fuelled by the pandemic means that it is now reaching crisis point.
Apple, a $2tn company and the world’s biggest buyer of semiconductors spending $58bn annually, was forced to delay the launch of the much-hyped iPhone 12 by two months last year due to the shortage.
However, the most telling example of the semiconductor crisis has come from Samsung, the world’s second-largest buyer of chips for its products after Apple. The company said it might have to postpone the launch of its high-end smartphone due to the shortage, despite also being the world’s second-largest producer of chips.
The chip shortage looks set to persist for some time yet. It can take up to two years to get complex semiconductor production factories up and running, and manufacturers are in the process of significantly raising prices for the second time in less than a year. “There is no sign of supply catching up, or demand decreasing, while prices are rising across the chain,” says Campling. “This will cross over to people in the street. Expect cars to cost more, phones to cost more. This year’s iPhone is not going to be cheaper than last year.”
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Insights from Inrego’s CEO:
“As the article mentions there is, due to the shortage on components, a delay on new IT shipments such as laptops and phones to companies around the globe. This creates further delays in the buyback market as it needs new equipment before there can be a shift from the used one. And the question many people in the ITAD industry is asking themselves; will this temporary make the prices go up again? The answer to this nobody knows, but it is for sure an uncertain market on used IT equipment right now and a lot of re-sellers of used IT needs more products at reasonable prices.” -Christoffer Sandell, CEO, Inrego Global
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