The global chip shortage could dampen Christmas
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At his Seoul home, a gamer uses the Playstation 5 console.
AFP via Getty Images| AFP via Getty Images
Global chip shortages have been ongoing for years and aren’t going away.
So what does all this mean for Christmas, you ask? What does this mean for Christmas?
It all depends on your goals and the time you wait to shop for Christmas.
Semiconductors are beneath the hood of an increasing number of products — from cars and e-bikes to washing machines and toothbrushes. These chips are often in limited supply due to the Covid pandemic, which has caused supply chain disruptions and an increase in demand.
CNBC was told by Alan Priestley (a Gartner semiconductor analyst) that there will likely be some effect on Christmas due to the lack of chip supply.
He said that “we may discover that certain things that were readily available in past might not be available now,” and that there is no instant satisfaction from shopping online. We are all familiar with Amazon Prime. Just hit the button and it will be there within 24 hours. Perhaps now, you have to wait two or more weeks.
A lot of electronic devices today contain large numbers of chips.
Priestley explained that the problem is not one chip. “New phones have many, many power control chip and those are the ones that are most in demand.”
TSMC, Samsung IntelThe heavyweights in the semiconductor industry aren’t focused on these less-advanced power management chips, as they have the ability to make more money by making more.
Glenn O’Donnell is VP of research at Forrester and says that although semiconductor-rich products, such as computers, smartphones, and consoles, are expected to be popular Christmas presents. However, availability issues exist.
Sony’sPS5 and Microsoft’sXbox Series S, however, are not widely available. Google’s Pixel 6 Pro smartphone.
O’Donnell stated to CNBC that if you are able to get them, it is worth the high price.
He said that he believes supply problems, including those involving semiconductors, will be a problem this holiday season. You may not have the right items if you do not already own them. Santa won’t deliver, even though he promises.
Berlin-based Jack de Santis, CEO of repair service Rebel Technology Labs, told CNBC that he’s looked “everywhere” for a Google Pixel 6 Pro — but to no avail. It’s unclear if Jack will keep his current phone or purchase the Pixel 6 regular, which is still in stock at a handful of places. He said that both options were compromises that he wasn’t happy with.
Combating the bots
This Christmas, consumers will not be competing against other shoppers for the most in-demand products. Many people use automated bots in order to buy popular products online as soon they are available at face price.
O’Donnell stated that “the bots purchase high-demand goods to take control of the market and then they can sell them at inflated prices.”
Many PS5s, Xbox Series S and Xbox Series S consoles have been sold. eBay, FacebookGumtree, Marketplace and other platforms that allow you to buy-and-sell for a lot more than what is recommended retail.
Be flexible and don’t be afraid to ask for help
Priestley advised that shoppers should look for electronics in stock so they are available as soon as possible.
He said, “If it is available and there are enough of it, buy it.” The problem is that the supply lines have been extended. It will take longer for goods in the current supply to be consumed.
Flexible buyers may have greater success. For example, PCs come in many different configurations. The central processing unit (CPU), however, can be changed.
Priestley explained that while it is possible for a configuration not to be available, Priestley suggested other configurations. “Consider alternatives.”
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