The chip shortage strikes again! Apple is expected to face even further increased chip prices as their supplier, TSMC, deals with their own trickle down cost increases per this report from Bloomberg.
The price increase on Apple’s end stems from one of TSMC’s material providers, the Japanese chemicals firm Showa Denko K.K. dealing with the rising costs of raw materials. Apple is not the only one, however. The entire semiconductor industry has been dealing with similar situations since 2020 amid the pandemic. We just can’t have nice things, I swear.
The Chief Financial Officer of Showa Denko, Hideki Somemiya has gone on record saying…
A big theme this year common to all the players in the materials industry is how much cost burden we’d be able to convince customers to share with us. The current market moves require us to ask twice the amount we had previously calculated.Hideki Somemiya
Somemiya has also told Bloomberg that the situation is unlikely to improve until at least 2023. That’s quite the ways away, and we could be dealing with the chip shortage longer if less optimistic sources are to be believed.
So the cost increase starts at materials, gets passed onto production, then supplying the chips to manufacturers and then BAM Apple is faced with quite the predicament, aren’t they? Apple has been following a very consistent pricing strategy on iPhone release going back quite a ways, and so far iPhones and Apple as a whole has been resilient to shortage-based price hikes.
Could this be the final nail in the coffin and cause Apple to buckle? Find out on the next episode of “Holy Crap We Are So Tired of Dealing with A Chip Shortage Can it FINALLY END???”