If you're considering purchasing new gadgets, now may be the time to act. Consumer electronics are experiencing another wave of price increases, largely driven by a persistent memory chip shortage. In June 2023, Apple announced price hikes for its MacBooks and iPads, with Xbox consoles also set to become pricier starting in August.
This latest surge follows previous price increases on products like the Sony PlayStation 5 Pro and is compounded by rising oil prices, which have driven up shipping costs. According to Shawn DuBravac, chief economist at the Global Electronics Association, the ongoing shortage is primarily due to manufacturers prioritizing chip production for AI data centers over consumer electronics.
Reasons Behind the Price Increases
The memory shortage is anticipated to continue, affecting the availability of various consumer electronics. DuBravac notes, "In the past, you maybe could have waited out little blips like this. I don’t think that’s the case here. Waiting is not a strategy right now and probably won’t be for the foreseeable future." This indicates that consumers may face ongoing challenges in finding affordable tech.
To mitigate the impact of rising prices, DuBravac suggests considering refurbished gear. He warns that if a product hasn't seen a price increase yet, it likely will soon. Even if prices have already risen, they may represent the best base price for some time.
Consumer Concerns Amid Price Hikes
As the back-to-school and holiday shopping seasons approach, consumers are increasingly worried about the costs of new devices. Thibaud Hug de Larauze, CEO of the secondhand marketplace Back Market, states, "People are worried that they’re going to have to pay a lot of money for the next device or the next purchase." This anxiety is pushing consumers to upgrade more quickly, fearing inflation.
On a positive note, the market for refurbished and secondhand products is thriving. Sean Cleland, vice president of Mobility tech at B-Stock, reports that used smartphones are currently selling for 10 to 20 percent more than they were in December 2022. Typically, used phones would depreciate in value, but the demand for refurbished products has changed this dynamic.
The Growing Appeal of Refurbished Devices
The increased interest in the resale market presents an opportunity for consumers to find quality products at lower prices. As Cleland explains, "The supply chain will correct eventually. Secondary market pricing will go back to normal depreciation, but it will continue being a step above what it was in 2022. It just never comes all the way back."
Many manufacturers are enhancing their resale programs, offering buyback or trade-in options for various devices, including phones, computers, and tablets. Selling used gear on third-party marketplaces can yield higher returns as long as the current shortages persist. Cleland advises, "You’re going to get way more from that phone than you ever would before. Take advantage of it; there’s trade-in and resale value in all that stuff."
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by Wired. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
