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Samsung is likely to increase smartphone prices as memory chip costs surge up to 50%. The rise, driven by AI demand and supply issues, will mainly affect Galaxy M and A series phones, making early purchases a smarter choice.
Why might Samsung phones become more expensive?
New Delhi: Recently, news broke that Samsung is preparing to increase the prices of its smartphones. This information might come as a shock to Samsung fans, as the company's phones already fall into the premium range. Now the question is: why will the prices increase?
The main reason behind this is the rising cost of memory chips.
Memory chips are the small components used to store data, apps, photos, and other information in phones. Recently, the prices of these chips have seen a surge of up to 50%.
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There are two main reasons for this:
Rapid expansion of AI (Artificial Intelligence) technology: AI servers and computers are now being manufactured in large numbers worldwide. There is a huge demand for "high-bandwidth memory," or HBM chips, to power them.
Supply chain issues: The global supply of chips was already limited. Now, with the increased demand from AI, manufacturing chips for mobile phones has become even more difficult.
Due to these two reasons, chip manufacturers are now dedicating a large portion of their production to making AI server chips, which means smartphone companies are getting the necessary chips at higher prices.
When the production cost of a product increases, a company has only two options: Either it absorbs the loss itself, or it increases prices to offset that loss. Even a large company like Samsung cannot sustain losses for a long time. Therefore, it is now indicating that it will increase the prices of its smartphones.
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According to a report by Digit.in, mid-range and budget phones will be most affected by this increase. Because the company's profit margins on these phones are already low, increasing prices is the only option left when costs rise.
Samsung's Galaxy M and A series, which are aimed at budget-conscious consumers, may see price increases first. However, the Galaxy S series (flagship models) will likely remain largely unaffected for now, as these phones are already expensive and the company won't raise their prices immediately.
If you're planning to buy a new Samsung phone in the near future, now might be the right time. Because there's a strong possibility that prices will increase in the next few months.
Today's budget-friendly phone might become slightly more expensive later. Due to the shortage and rising cost of memory chips, Samsung may have to increase the prices of its phones.
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The expansion of AI technology has impacted the chip supply in the mobile industry. This will directly affect consumers' wallets, especially those who want to buy mid-range or budget phones.
If you're considering buying a Samsung phone, it would be beneficial to buy it now, as the same model might cost more in the future.
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