Stalemate: Smartphone makers should raise prices but can't due to low demand

A rather difficult situation has developed in the electronics market: rising production costs are forcing

manufacturers raise prices, but at the same time they fail to do so due to decreased demand.
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The latter, according to experts, is due to the reduced purchasing power of consumers. And we are talking not only about Russia, but also about the world as a whole.

Two years of global quarantine gave the sectorconsiderable profits due to high consumer interest, and the widespread removal of restrictions has dropped demand and, according to the logic of the market, should lower prices somewhat. But at the same time, global inflationary processes affect the rise in production costs, which, in theory, should inevitably raise prices.

Pavel SigalFirst Deputy Prime Minister of Opora Rossii

As a result, manufacturers of smartphones and gadgets do notcan afford a noticeable increase in the cost of production, otherwise they will face an even greater drop in demand. But at the same time, the expert notes, some growth dynamics can still be traced.