The chip scarcity is driving up tech costs–beginning with TVs

A masked shopper slouches as he looks at a flatscreen TV in a big-box store.

Enlarge (credit score: Bloomberg | Getty Pictures)

Televisions, laptops, and tablets have been in excessive demand in the course of the COVID-19 pandemic, as individuals labored and discovered through Zoom, socialized over Skype, and binged on Netflix to alleviate the lockdown blues. However all that additional display time additionally helped set in movement a semiconductor provide crunch that’s inflicting costs for some devices to spike—beginning with TVs.

In current months, the value of bigger TV fashions has shot up round 30 p.c in comparison with final summer season, in accordance with market analysis firm NPD. The soar is a direct consequence of the present chip disaster and underscores {that a} repair is extra sophisticated than merely ramping up manufacturing. It could even be solely a matter of time earlier than different devices that use the identical circuitry—laptops, tablets, and VR headsets amongst them—expertise related sticker shock.

Some producers have already flagged potential worth rises. Asus, a Taiwanese laptop maker, mentioned throughout a quarterly earnings name in March {that a} scarcity of elements would imply “worth hikes additional upstream,” which might seemingly have an effect on shoppers.

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