Higher prices of electronic gadgets expected due to Japan’s tsunami ?

Posted on March 31, 2011

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Now is the time to buy the dream gadget you always wanted. It is indeed a high possibility the prices of most gadgets will rise especially if its  sources are from from Japanese factories.

QUOTE : AFP News

Japan churns out many of the world’s smartphones, video cameras and other gadgets and while sales are not expected to suffer around the globe, industry analysts expect prices to rise.

‘From semiconductors to displays, to automotive and consumer electronics, the effects of the Japan earthquake continue to reverberate throughout the world,’ said Dale Ford, senior vice-president at research firm IHS iSuppli.

‘Beyond the damage to Japan’s own industrial base, the earthquake has impacted the production of basic electronic raw materials,’ Ford said. Japan produces between 15 per cent and 20 per cent of the world’s electronics and ‘plays a particularly key role in some areas,’ said Jean-Philippe Dauvin of Paris-based consulting company Decision.

Mr Dauvin said 30 per cent of the videogames, 40 per cent of the video cameras and still cameras and 15 per cent of the television sets sold around the world are manufactured in Japan.

He said 40 to 50 of Japan’s 140 semiconductor factories have been shut down as a result of the March 11 earthquake and tsunami and noted that Dram and Nand memory are key components of both tablet computers and smartphones.

Within the next few weeks, there will be disruptions to the global supply chain and higher prices for computer chips, ‘leading inevitably to higher prices for the consumer,’ Mr Dauvin said.