2021 has just begun, and the price increase of the consumer electronics industry chain has already arrived. The price increase may be the main theme of this year’s mobile phone accessories, especially iPhone mobile phone accessories. Due to the impact of the new crown epidemic on the entire semiconductor and chip industry, the output of upstream wafer manufacturers is insufficient, and the production capacity of display driver ICs is slowly climbing, which eventually leads to short supply. In 2021, the price of Apple’s mobile phone LCD screen will increase by 20%~30%, and the price is still increasing. Why does the price of Apple’s mobile phone screen assembly continue to increase?
1. iPhone12 is selling well globally
In 2020, due to the epidemic, the iPhone 12 series was postponed to October, but now it only took more than two months to make it into the TOP 10 global mobile phone sales. The iPhone 12 is even the top three on the list. We can probably foresee that in the next year, the iPhone 12 is very likely to be like last year’s iPhone 11, while everyone is crazy about it, while still harvesting the major mobile phone sales charts.
According to data released by Gartner, a market research organization, Apple shipped nearly 80 million mobile phones in the fourth quarter of 2020, surpassing Samsung and becoming the global smartphone sales champion.
2. Market inventory cannot meet market demand
At the end of 2020, many stock dealers and manufacturers of mobile phone accessories will sell Apple screen assemblies at very low prices in order to cash out at the end of the year. The inventory in 2021 can no longer meet the demand for orders in the market, and continuous price increases have become a reality.
3. Small-size LCD is out of stock and the price increases by 20%~50%
LCD prices have risen for four consecutive months. In the COVID-19 epidemic, consumer demand has been stimulated. Mobile phones, laptops, and tablets have become essential tools for home office work. In terms of product types, low-end LCD screen products have a larger increase, about 20%-30% or even 40%-50%.
4.the display driver IC is out of stock and the price is increased by 100%
The demand for driver ICs began to rise significantly in the second half of 2020. In the fourth quarter of 2020, news of out-of-stocks had begun and suppliers began to increase their quotations. The increase ranged from 10 to 20% until the first quarter of 2021. The situation has not improved in the first quarter, and the supply of driver ICs is still quite tight.
According to the supply chain, since foundries and packaging and testing plants are still increasing their driver IC production and packaging and testing quotations in 2021, driver ICs are currently coordinating product price increases with customers in order to reflect the problem of rising costs. , Customers have also agreed to raise their quotations one after another, and they have the fastest chance to start the increase in the second quarter.
5. Price increase of passive components
According to statistics, recently Yageo, Huaxinke, Housheng, Rubycon, etc. have issued price increase notices or expressed the possibility of price increase. The price increase time will be concentrated on March 1st and after, or promote this round of passive component price increase. the elements of. The price of passive components increased by 10% to 25%.
The price increase of the iPhone LCD after-sales screen is caused by the price increase of various raw materials and the lack of stock in the market. The price increase of the mobile phone screen assembly has lasted for at least half a year, and the production capacity of display driver ICs cannot meet market demand in a short period of time. There will be the largest chip shortage in history in 2021, which will affect all electronics industries.