Despite gaining traction and making good progress with the pandemic still clamoring all across the world, the tech industry has made substantial strides in the areas of innovation and established 2020 as an eventful year regardless of the upsets. With the release of next-gen GPUs to the introduction of brand-new semiconductor architecture and many more, the industry has made the best out of a bad situation.
However, as we are now in the tail-end of Q4 and are about to welcome the year 2021 with open arms, it seems that we are to expect even more drastic changes and shifts in the market for years to come. Most notably, the current trend points to higher prices in the foreseeable future, which dictates that most consumer electronics and tech might see a jump in price.
Staggering Global Demand
Now that more people are working from home, studying in their living rooms, and transforming their extra living space into a functional workplace, the demand for consumer electronics such as phones, laptops, computers, and other mobile devices has also gone up. Likewise, all relevant services such as video-on-demand streaming, internet usage, video conferencing, and e-commerce have substantially increased engagement and users throughout 2020.
Consequently, as the global demand continues to rise, the price will also rise comparatively. People will continue to buy as these once extensions have now become a need for everyday living in the new normal. And even if this pandemic’s impact starts to subside, some changes will have a permanent effect on global culture.
Wafer Prices Are Going Up
Apart from a theoretical point of view, we are also seeing changes at the base-level for all things technology, as semiconductor foundries worldwide are preparing to raise price quotas for their wafers in 2021. Prominent names such as Global Foundries and Vanguard International Semiconductor have already set their prices to increase by around 15-20% and will see another 20-40% increase in 2021. Soon enough, everyone in the semiconductor industry will need to adapt, and the price hikes will become the norm.
- Crucial Component For All Things Electronic: Wafers and semiconductors are present in every central processing unit, which is a critical component of almost every device we use on a daily basis. So, if prices go up by a considerable percentage at the base-level, we can also expect these price hikes to trickle down to the end product.
- Global Supply Chain Issues: As of now, most industries, especially in the tech space, are still experiencing global supply chain issues that severely hamper the transfer of raw materials, production and manufacturing, and having products available. Because of the lack of supply, this will also cause a compounding effect of price increases.
80 Plus Increases Its Licensing Fees
Power supplies rely on their 80 plus rating to prove their energy efficiency and reliability, and if you’ve ever built a computer, you will know how important this simple logo is to a PSU’s accountability. However, the 80 Plus Program is planning to increase the price of licensing fees and testing, which is off-putting for most of the manufactures in the PSU space.
- Bad For Low-Volume Models: Of course, prominent companies like Corsair and SeaSonic will not be too worried about the change because they can afford it, but the same can’t be said for low-volume models. As a result, generic PSUs and even the more affordable tier of power supplies from household brands might decrease production due to the increased expenses brought by licensing.
- Could Be Adopted By Other Markets: If the 80 plus program increases its prices for licensing, we might see other players in the market follow in suit and raise their prices as well. This price hike will lead to a domino effect that will only lead to the consumer suffering the most as the situation is not ideal in the slightest.
Raised Internet, Data, And TV Prices
You might want to secure and hold onto your virtual phone numbers and all other tools necessary for streamlining communication and connection because there are also signs of internet prices, data usage, and TV subscriptions going up too. Just recently, it was made known that Comcast will be hiking their prices, and it comes around at a $3 increase for all internet packages. Of course, it may seem like a small amount, but this could very well increase over time, and more companies might follow in suit to raise their prices.
Overall, the current tech trends signal that we should be more vigilant with our savings as the price hikes show no signs of stopping soon. So, avoid making unnecessary purchases, utilize discounts to the best of your ability, and ensure that you have a safety net to rely on if things go awry.