A man uses his older iPhone to photograph his new iPhone X at an Apple store in New York, U.S., November 3, 2017. (REUTERS)
Shoppers could be looking at an expensive Christmas as supply chain snafus force companies to make and deliver their latest higher margin electronic gadgets to market faster, leaving fewer cheaper options to put under the tree.
Top electronic brands are using their best resources to navigate a chip shortage that has curtailed the production of goods across pricing ranges because of logistic issues, a tight labor market and closed factories due to pandemic lockdowns in parts of Asia.
Various websites are showing that cheaper products have longer wait times for delivery, while expensive items are available sooner.
“If vendors choose which device models they want to manufacture when they have limited access to chips then they’ll generally go to the higher end, as they can better maximize their profits,” ABI Research analyst Filomena Iovino said.
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Apple Inc and Microsoft Corp have hoisted bright red banners on their websites telling online shoppers to get their holiday presents for delivery as soon as possible on some of their newer, more expensive products.
An $800, 11-inch iPad Pro can be delivered as soon as Nov. 17, but the cheaper and newer $330 entry-level iPad could take nearly a month or more.
