What is the Impact of the Semiconductor Shortage in the Smartphone Industry?

Much like other electronic products, smartphones also have certain invaluable internal components. Without these component parts, assembling a fully functional device would be impossible. Smartphone manufacturers and vendors must first secure the procession of these component parts before they can proceed to complete delivering pending orders or launching new products in the market.

The smartphone industry is currently battling a debilitating semiconductor crisis that was triggered due to the pandemic’s remote working protocols. With the increasing pressure of demand on the global supply chains, overheads on component parts like semiconductors have also risen. Moreover, since China is one of the largest suppliers of semiconductors in the world, the sky-high freight charges instituted by the country have further pushed the smartphone industry into a serious predicament.

The impact of this acute shortage is again quite predictable. The excess amount spent by manufacturers on procuring the scarce 4G semiconductor chips for smartphones will be added to the price of the device. This implies that the extra cost will finally have to be borne by the consumer. Thus, as the smartphone market grapples with the unprecedented shortage of semiconductors, the prices of smartphones across various segments are bound to witness an upward trend. Furthermore, this semiconductor crisis has also inevitably touted several new product introduction plans of manufacturers across the world.

However, another significant caveat in the issue remains that this semiconductor shortage is mostly confined to the 4G chips. The situation seems to be slightly better for the 5G chipsets. Thus, be prepared to pay a slightly higher price for your favorite smartphone this year due to rising component charges. However, you can still make the best out of the situation by opting for Bajaj Finserv EMI Store’s stellar deals and No Cost EMI plans when purchasing your ideal smartphone. Purchase an under 10000 mobile phone and stand a chance to win additional cashback vouchers on the EMI Store. You can use the Bajaj Finserv EMI Network Card to break down the costs into affordable No Cost EMI.

To help you select a smartphone that fits the budgetary needs of the current crunch time, we have curated a list of the best smartphones with the latest features.

• Samsung Galaxy M12

From the house of Samsung, this budget smartphone comes loaded with the most advanced features in the market. Running on the Octa-core processor and 6000 mAh battery power, this model is sure to deliver a seamless multitasking experience to its users, without the rapid battery drain like most other budget phones. The triple rear camera array is an added delight for the shutterbug in you. As one of the best models in the under 10,000 mobile phone category, you are sure to remain optimally insulated from the semiconductor crisis when you opt for this device.

• Redmi 9

No one does budget smartphones better than Redmi. Yet another gem in the under 10,000 mobile phone segment, the Redmi 9 model comes equipped with a whopping 6.53-inch display and stellar screen resolution that redefine your viewing experience like never before. While the device operates on a MediaTek Helio G35 processor and packs a respectable 5000 mAh battery, its unparalleled screen clarity and aspect ratio definitely steal the show. With the model’s 4GB RAM and 64GB internal storage space, you can run as many tabs as you like without worrying about lags and interruptions.

• Tecno Spark 7T

As one of the latest models in the market, the Tecno Spark 7T model packs the amazing specifications of a Redmi 9 model, with the added benefits of amplifying its battery power. Since this phone comes with a 6000 mAh battery, you get to do more and experience more without falling for the pestering need to charge your device. Additionally, you get to choose your ideal match from a variety of vibrant colors like jewel blue, magnet black, and nebula orange.

• Nokia C20 Plus 

This model exemplifies Nokia’s untainted legacy in the global mobile phone market. Operating on Android v11 OS, this model is fitted with the top-most features in the budget smartphone segment. What’s different about this under 10,000 mobile phone listing is that it runs on the Unisoc SC9863A processor to deliver unmatched performance to users. While the phone is reasonably priced in the market, you can grab it at an even lower price by shopping at the Bajaj Finserv EMI Store. Use the EMI Network Card to purchase the device on No Cost EMI.

Honorable Mention: realme 8 5G

Since the 5G chipset market is currently representing a slightly more optimistic scenario in the midst of the ongoing semiconductor crisis, opting for a 5G smartphone model may also be a prudent choice. realme 8 5G is one of the best 5G phones in India. Not only does this model pack stellar connectivity features owing to its 5G chipset, but it also aces on the processing, charging, storage, and display fronts as well. Ace the art of clicking pictures like a pro with the auto-focus feature on this model’s triple rear camera setup. However, this model is available at a slightly higher price point than the other models on this list. But it still remains a steal given its premium features and specifications.

The semiconductor crisis has been creeping in since the last quarter of 2020. Its crippling effects are yet to be conquered by the smartphone industry, although experts predict that the market situation will probably improve by early next year. In the meantime, if you want to remain insulated from the price rise in the market, opt for the most popular budget smartphones within Rs.10,000 or select one from the slightly higher range of the best 5G phones in India.