As expected, the tech market is facing rising prices. Europe is particularly affected.
We could predict it in view of the economic situation, it is now a reality. The tech market is facing a general price increase due to several factors. We can mention inflation and the increase in the price of raw materials. For our favorite brands, this includes a large increase in the price of manufacturing chips at TSMC and other foundries. The parity between the euro and the US dollar is another reason for this inflation of tariffs.
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While waiting for the presentation of highly anticipated devices that should definitely put this price increase in our minds, such as the iPhone 14 or the GeForce RTX 4000, brands are taking the lead on already existing products.
Amazon and Meta are already raising their prices
You couldn’t have missed the announcement of the Amazon Prime subscription price increase at the end of July. Amazon’s all-in-one service is up over 40% off the annual fee. A very strong increase which is explained by a price that has remained unchanged for a very long time in Europe, but also by a more complex context. The price of paper, and therefore of cardboard, has exploded, which can undoubtedly explain this adjustment by the American giant. The same increase in paper that puts the CanardPC media in difficulty in France. Regarding subscriptions, Twitter also announced an increase in the price of the Twitter Blue service, from 2.99 to 4.99 dollars per month. The service is not yet available in France.
In France, Amazon is not the only one to have already announced a price increase. The Meta Quest 2, the virtual reality headset from the giant Meta, increases by 100 euros from August. Here again, it is the economic situation that seems to be responsible, even if we can also find other reasons. Mark Zuckerberg’s firm is being scrutinized by the authorities on its practices vis-à-vis competition, particularly in the emerging field of VR. The brand may not want to reveal how its helmet was sold at a loss.
Towards an increase in the PS5?
The game consoles launched in 2020 must continue their lives for years to come. In this new context, one wonders if the manufacturers will increase the prices of their machines. This is the question Sony was asked during the presentation of its first quarter 2022 financial results for the PS5.
The firm’s chief financial officer, Hiroki Totoki, kicked in: “For now, I can’t tell you anything specific about the prices.“. A response that still leaves open the possibility of a price increase. However, keep in mind that the console market is very competitive. Raising the price of the PS5 if Microsoft does not increase the price of its Xbox could be a very difficult decision strategically for Sony.
According to rumors, Intel is also preparing for a nice price increase for its Raptor Lake processors promised for the end of 2022. If this is confirmed, we will have to monitor AMD’s position with its Ryzen 7000 processors. Samsung is also expected to offer a general price increase for its new Galaxy Z Fold, Z Flip and Galaxy Watch range.
Obviously for this article, we are interested in price increases in tech or video games, but everyone can see the increase in generalized prices: gasoline, food, car rental, train or plane tickets for mention only these.
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