Expect the Price of Tech and Gadgets to Go Up This Holiday Season

Due to limited resources, a direct result of the pandemic, it will be significantly harder for consumers to purchase items this holiday season. The chip shortage, which has significantly impacted the auto industry, presents a massive challenge for the tech industry, as customers will likely have to rethink the times at which they shop (and what items they can/can’t live without). For companies, their revenue will likely decrease during such a profitable quarter, and cut the momentum of new, recently launched products. Apple, for example, had 6 billion dollars slashed off their revenue last quarter, and are struggling to provide high quantities of new products, such as the Airpod Gen 3 and iPhone 13. Even companies like Microsoft, Sony, and Best Buy are seeing newer items sell out within seconds (the PS5 and Xbox Series), leaving no time for the rate of production to keep up with the high demands. Wanting to still make a profit, all these businesses are offering early access to “restock events” if you are a subscriber to one of their services, or contribute to their income in a specific way (whether it be through regular shopping or monthly payments). With competition and prices at an all time high, consumers will truly have to shop ahead of time and look for the best deals if they hope to save money. 

COVID-19 has made the production of goods much more difficult, for there is now a scarcity of necessary resources. As a direct result, inflation (the prices of goods) has gradually increased and made the cost of living significantly higher. It’s much more difficult for people to afford items, which in the past were so readily available; unfortunately, there seems to be no end to this soon, as hundreds of shipments (containing resources) are being prevented from passing through transactions. If not clear already, the impact will be felt during holiday season, as that’s when shopping is at an all time high and millions of citizens visit stores to find the best deals (with lines stretching almost a mile at times, especially during Black Friday). This year, there will also be significantly more opportunities for people to get early access to goods (through memberships or subscriptions) for industries understand that turning a profit will be much more difficult due to scarcity of items. Thus by offering people the chance to get their product early, firms like Apple and Amazon can still sell a large amount, regardless of the current shortage.