It is not hidden from anyone the struggle that the semiconductor and electronics manufacturers are facing due to the shortage of components. Smartphone makers across the globe are finding it hard to procure the components for building devices at reasonable rates due to supply constraints. Samsung Galaxy S22 series, the flagship smartphone series from Samsung for 2022, is not far from launch. The South Korean tech giant might have to price the smartphones in the Galaxy S22 series a little higher than planned due to the shortage of chipsets globally. Semiconductor manufacturers aren’t able to produce in the same quantities and speed in which they used to pre-pandemic, and on top of this, there are also shipment issues. Even shipment costs have gone up significantly. Due to this, the overall cost for manufacturing a smartphone has increased for the companies.
Samsung Galaxy S22 Series Will Face Stiff Competition from Apple and Chinese Brands
If Samsung decides to price the S22 series smartphones more than the S21 series, it might lose significant market share to Apple and Chinese brands. Apple didn’t interfere with the pricing of the iPhone 13 series. The iPhone 12 and the iPhone 13 series both were launched for identical prices. While Samsung is great, it might lose market share to Apple if the company decides to hike the prices of the Galaxy S22 series. Further, people might just focus on the S21 series instead, which might not be the latest in the market, but still has really good specifications and features. The Galaxy S21 series will also get a price cut once the S22 series is out, and if the S22 series is more expensive, users would just go for the S21 series as its value utility would increase with the decreased price. Chinese brands such as OnePlus, Oppo, and Vivo might also be able to capture some market share from Samsung.
