Business

Samsung and Sony to raise the prices of smartphones and TVs by 5-10%

Due to the COVID-19 pandemic, several tech makers including Samsung, facing slow-paced sales of their products such as smartphones, TVs, washing machines, microwaves, and more, which eventually decreased their revenue and making them bear losses.

In order to tackle this issue, Samsung and Sony decided to increase the prices of smartphones and TVs by 5-10%, reported by Science and Technology Innovation Board Daily.

According to the report, the cost of material to make the TVs is also hiked by 30-50 percent, which will double the overall selling price of TVs depending on the regions where the consumers are living in.

Why Samsung decided to hike the price?

There are many reasons for the price hike of these devices, but the one is Samsung is facing a shortage of semiconductors (chipsets) used in these gadgets especially smartphones.

For example, the company just faced the scarcity of processors due to its chipset plant in Texas got halted by a winter storm which drastically affected the production of phones and increased the prices of smartphones.

On the other hand, the TV market for Samsung is also facing slow-paced sales due to COVID as no one going to buy TVs from outlets leading to a rate rise.

However, it is claimed from industry insights that these price hike situation will be settled down when the supply chain for the chipsets gets better which somehow not only lowers the prices but also helps to stabilize the business workings globally.

Lastly, it is not the first time for Samsung including other companies to just increase the prices of their electronic gadgets. But as you know, this time the situation is way critical for the market as well as for the consumers and being healthy is way more important than buying TVs for entertainment.

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