In 2021, the worldwide chipset scarcity has had a significant effect, as several OEMs failed to satisfy demand due to the consequences of the epidemic. However, this issue has the potential to worsen the situation, particularly for Smartphone consumers. According to recent research, when manufacturing expenses will climb next year, the price of chipsets, and hence smartphones, might rise even more. Let's dig out the reasons why the price of smartphones will increase in 2022? 3 Reasons Why Smartphone Makers are Increasing Prices There are many reasons why manufacturers can increase prices for their phones. According to the market movement, the following reasons are the prime factors that are mainly pulling the strings. Global Shortage for the Supply of Smartphone Components The smartphone market has been expanding day by day. The demand and shipments are likely to increase more in 2022. The price ranges of smartphone components like memory and chipsets are rising due to their ongoing scarcity. Read Best Camera Phones Released in 2021 There are significant limits of chipsets, posing a problem in the budget-friendly section of the market. The worldwide chip shortage still has not had an effect on the smartphone segment since the demand-supply balance has been reached. This may alter in the following quarters, resulting in a rise in the worldwide average price of cellphones. Now the smartphone producers have to decide their next steps whether they want to absorb the expense or push it off to their customers. The expense seems to have been passed on to customers by different brands. The majority of the price increases will affect the entry-level or budget segments. Read realme narzo 50i: The Best Budget Smartphone in 10K Segment Smartphone Components Price Hike Earlier this year, experts have cautioned about the rise in smartphone pricing. Aside from the scarcity of 4G CPUs, the cost of components such as charting adapters, motherboard components, memory chipsets, and others has risen. This price rise has resulted in a minimum of a 10% increase in the expenses of manufacturing cellophane, which will ultimately reach the end-user. Xiaomi President Xang Wiang issued a similar warning in March. He remarked that the corporation will endeavor to reduce expenses to a certain extent but that anything beyond that would be passed on to customers. Because the margins on low-cost phones are so small, they suffer the most. Read Business Laptop Buyer Guide with Price Ranges in Bangladesh The Advent of the 5G Technology The cost of smartphones is projected to grow further as many nations are adopting 5G- networks and supportive phones are widespread. With people eager to shift to 5G-enabled handsets, there will be an increase in demand for all these smartphones. Though the world has seen the influx of affordable 5G handsets, the technology isn't yet accessible in many countries, and the pricing is exorbitant. When 5G will be available throughout the world, there will be greater demand for supportive phones, and consumers will have to pay more for them. Read Apple iPad 9th Generation 2021 Review: Is it a value-for-money device? Conclusion The epidemic has had a detrimental effect on supply chains in general, with chips being especially heavily struck. Manufacturers are doing their best to cope up with the situation, but chip scarcity is a serious impediment right now. Read Best Gaming Phones Released in 2021