The smartphone market might see new price hikes. This is because of geopolitical tensions and rising oil prices. These factors could increase the cost of making screens for electronic devices. This includes popular phones like the iPhone and Galaxy.
Oil Pressures the Screen Industry
According to a Reuters report, the CEO of Samsung warned about rising energy costs. The conflict in the Middle East, especially with Iran, could raise production costs. This affects the electronics sector.
He explained that oil prices directly impact the cost of materials for screens. Some parts, like industrial films and chemicals, come from crude oil. Phonearena reported this, and it was reviewed by العربية Business.
So, higher oil prices automatically mean higher material costs. This eventually leads to higher prices for electronic devices for consumers.
Potential Impact on iPhone and Galaxy
Samsung is a major screen supplier globally. They provide OLED screens to many companies. This includes Apple for iPhones and MacBooks. They also supply screens for Samsung's own devices.
This means continued high energy prices could add new pressures. Smartphone makers already face rising component costs and supply chain issues.
Moves to Reshore Screen Manufacturing
Japan Display is planning a new screen factory in America. This factory could cost up to $13 billion. The goal is to reduce the US reliance on screen technology from China.
This plan is part of larger investments. These aim to boost technology manufacturing within the United States. Total investments could reach $550 billion.
Rising Chinese Competition
In the past, Japan Display was a key supplier of LCD screens for iPhones. Later, Apple switched to OLED screens. Other companies, including Chinese suppliers, now provide these.
Research firm Counterpoint predicts China's dominance in the global screen market. Their share could rise from 68% in 2023 to about 75% by 2028.
If geopolitical tensions and energy prices keep rising, consumers might face another round of higher smartphone prices in the coming years.