Most parts of the world are suffering from pretty severe forms of inflation which is a term that is used to define the increasing prices of finished goods and services as well as some raw materials here or there. Smartphones are getting more expensive as well, and the global chip shortage is contributing to this because of the fact that this is the sort of thing that could potentially end up making the manufacturing process cost more as well as increase the cost of raw materials and such.
Labor shortages, energy crises and the like are probably going to play a role in making smartphones more expensive, but if you plan accordingly you might be able to find the phone that you need without too much trouble. With all of that having been said and now out of the way, it is important to note that North America is going to be particularly negatively impacted by this due to the reason that this region already saw a ten percent increase over quarters 1, 2 and 3 in 2021 and this is likely going to get worse.
Things aren’t looking good in Latin America either, with 70% of buyers needing to pay off their phones through a long term payment plan which further increases inflation due to hidden costs that are often incorporated into this. Widespread currency devaluation in the Middle East as well as Africa resulted in this region seeing the worst inflation out of all, with a 17.4% increase in the average sale price for smartphones being noted and lower end smartphones seem to have increased in price the most.
Inflation is likely going to impact the financially-unstable people in society a lot more than richer ones. Many users are buying low quality or obsolete phones without even realizing it such as in India where regular phones that are more expensive due to inflation are being advertised as newer models despite having the same specs as everything else. Companies and consumers are dealing with inflation in a wide variety of ways, but it’s not going to go away anytime soon so things will likely get worse before they get better.
H/T: CPR.
Read next: New Survey Reveals How Customer Reviews Can Impact Product Sales
Labor shortages, energy crises and the like are probably going to play a role in making smartphones more expensive, but if you plan accordingly you might be able to find the phone that you need without too much trouble. With all of that having been said and now out of the way, it is important to note that North America is going to be particularly negatively impacted by this due to the reason that this region already saw a ten percent increase over quarters 1, 2 and 3 in 2021 and this is likely going to get worse.
Things aren’t looking good in Latin America either, with 70% of buyers needing to pay off their phones through a long term payment plan which further increases inflation due to hidden costs that are often incorporated into this. Widespread currency devaluation in the Middle East as well as Africa resulted in this region seeing the worst inflation out of all, with a 17.4% increase in the average sale price for smartphones being noted and lower end smartphones seem to have increased in price the most.
Inflation is likely going to impact the financially-unstable people in society a lot more than richer ones. Many users are buying low quality or obsolete phones without even realizing it such as in India where regular phones that are more expensive due to inflation are being advertised as newer models despite having the same specs as everything else. Companies and consumers are dealing with inflation in a wide variety of ways, but it’s not going to go away anytime soon so things will likely get worse before they get better.
H/T: CPR.
Read next: New Survey Reveals How Customer Reviews Can Impact Product Sales
