alt Hacker NewsThere was a very interesting podcast that went into all the details of the AI supply chain shortage [1]
The key takeaway for smartphones isn't so much that iphones will cost $150-200 more, which apple customers have shown they can stomach. But that cheap $200 chinese smartphones will need have to hike prices by about the same amount, which will decimate that market.
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I'd expect the iPhone price hikes to be less even in absolute $ than with the cheap phones. iPhones already had relatively large margins (as a %) for the newly increased costs to partially eat into.
> But that cheap $200 chinese smartphones will need have to hike prices by about the same amount, which will decimate that market.
Hmm. Even if iPhone users can theoretically stomach the increase, they have many other options available, whereas if the cheap $200 phones are the bottom of the market, there's no other real options.
I'm in the ~$450 USD Pixel range atm, and never buy the current flagship or anything. If that increases by $200, I'll look to the used market for the same phone. I really don't care that much about it, and it mostly acts as a fancy 5g modem for tethering. Plenty of younger people are already reverting to more primitive phones or physical media, and I wonder if it's just older addicted richer millenials that'll keep buying at even more than the already idiotic prices.
Or they'll start making cheap phones with <=2GB of RAM again and people will have to write software that uses memory efficiently (the horror).