Consumers should prepare for price increases this year, of as much as 20 per cent for smartphones, computers and home appliances, analysts and manufacturers have warned, as artificial intelligence demand drives up the cost of memory chips used in electronics.
Consumer electronics makers including Dell, Lenovo, Raspberry Pi and Xiaomi have warned that chip shortages were likely to add to cost pressures and force them to raise prices, with analysts forecasting increases of 5 to 20 per cent.
Dell’s chief operating officer Jeff Clarke said during an earnings call in November that the company had never seen “costs move at the rate” they were rising now and the impact would inevitably reach consumers.
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