On May 4, the current market analysis revealed that the gradual increase in the cost of technology products was mainly affected by the rising prices of precious metals and other raw materials.
Economic data shows that copper prices have climbed significantly, from US$5,000/mt in 2020 to US$8,300/mt, a price fluctuation that has had a direct impact on the consumer electronics market due to the fact that copper is an essential raw material for the manufacture of electronic devices.
Some semiconductor companies in China have announced to customers that they will raise product prices by between 10% and 20% to cope with rising manufacturing costs.
At the same time, the cost of sourcing precious metals such as gold continues to rise, exacerbating cost pressures on manufacturers.
Against this backdrop, storage product suppliers such as Western Digital and Seagate have begun to implement price adjustment strategies to pass on the impact of rising material costs to consumers.
While previous price forecasts may not have fully captured the tight raw material supply, the current raw material inflation has undoubtedly led to a general increase in component costs, forcing manufacturers of technology equipment such as PCs and smartphones to face severe cost management challenges.
This situation requires strategic adjustments within the industry to ensure sustainability and profitability in the market competition.