By Nivedita Balu

(Reuters] – This Christmas, shoppers could see a costly one. Supply chain snafus forces companies to produce and deliver new higher margin electronics faster. There are fewer options that can be purchased to go under the tree.

The top electronic brands have used their most powerful resources to manage a shortage of chips that has reduced production across price ranges due to logistical issues, tight labor markets and factories closing because of pandemic lockdowns in Asia.

Numerous websites show that lower-priced products take longer to get delivered, while more expensive items can be shipped sooner.

Filomena Iovino, ABI Research analyst said vendors should choose what model they would like to produce when they are limited in access to chips.

Apple Inc. Microsoft Corp (NASDAQ:) Have displayed brightly colored banners on their sites urging online shoppers to order their holiday gifts as quickly as possible for some of the newer and more costly products.

A $1800 iPad Pro 11-inch can be delivered by Nov. 17th, but delivery of the newer and cheaper $330 iPad Pro could take up to a month.

The $1,759 Hermes Apple Watch 7 and the $400 Apple Watch 7 will also reach customers in early December. However, it will be there sooner than expected.

Samsung (KS) will ship its latest $1,900 Galaxy Z Fold one week earlier than the $1.200 Ultra. Both come with the latest 5G chip.

Qualcomm Inc (NASDAQ) Inc is a high-end chip manufacturer for Apple, and many other Android phone manufacturers. According to the company, its customers now focus on high-end and premium-level devices.

“Since there are less of the cheaper phones, the cheaper phones aren’t going to be as discounted as we normally see,” said Runar Bjørhovde, an analyst with research firm Canalys.

According to Counterpoint https://, global smartphone shipments fell due to component shortages during the third quarter. However, record-breaking third-quarter revenue from mid-to top-end smartphones helped drive more than $100 Billion in sales, according Counterpoint.

This holiday quarter smartphones will be available at an average price of $410. That’s up from the $376 for the preceding quarter and $395 last. According to IDC, the average selling price of laptops will rise by 8% to $830 in this holiday quarter.

GoPro Inc. said that last quarter, it had shifted its production to high-margin cameras and earlier this month stated that people were purchasing top-end cameras for more than $300.

Bryan Ma, an analyst at IDC, stated that even laptop manufacturers, which rely heavily on Asian factories for the majority of their parts, have moved production of 11-inch Chromebooks to more expensive 14- and 15 inch models.

It works in a shortage-constrained market because consumers have no other options. Ma stated that once supply catches up with demand, manufacturers will be able to increase production to lower-end items to satisfy price-sensitive consumers.