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Samsung is reportedly planning to increase the prices of CMOS image sensor (CIS) components next year. The price increase will be effective from the first quarter of 2024. The company has already notified customers about the proposed hike.
Samsung CMOS image sensor components will get costlier next year
Smartphone sales have been sluggish in the past two years. Market studies revealed that shipments declined year-over-year (YoY) for 27 consecutive months between June 2021 and September 2023. Poor sales led to an inventory pile-up of CIS components, causing a global price drop.
However, the smartphone market started recovering last month. The growth graph is projected to continue upward in the months to come. In fact, sales are expected to grow annually at least until 2027. Unsurprisingly, vendors are ramping up production and the CIS component inventory is depleting fast.
As the demand increases, Samsung plans to seize the opportunity and make up for the profit decline due to the earlier price drop. The Korean firm, which is one of the top three CIS component suppliers in the world, will increase prices in early 2024, the Chinese media outlet Money reports (via Revegnus).
According to the publication, Samsung’s CMOS image sensor components will see an average price hike of 25% in the first quarter of 2024. Some products will see a bigger hike (up to 3 %) than others. Components for high-resolution sensors (32MP and higher) will be affected more.
Along with Samsung, this price hike will help its distributors rake in more profit next year. The new report says Chinese distributors Qingya and Supreme are expecting to benefit from the Korean firm’s decision. It is unclear if the move will affect the prices of smartphones too, particularly those sporting high-resolution cameras.
Other vendors may also increase the prices
Samsung is a leading manufacturer of CIS components used in image sensors made with the CMOS (Complimentary Metal-Oxide Semiconductor) process. Japanese firm Sony, Swiss firm STMicroelectronics, Chinese firm GalaxyCore, and Korean firm SK Hynix are other major players in the industry. Canon, Panasonic, and a few others also make CIS components.
With a sustained demand in sight, other vendors may follow Samsung in increasing the prices of CMOS image sensor components. Hopefully, smartphone prices won’t be affected by this hike. Samsung will launch several mid-range smartphones with 50MP cameras in the first half of 2024, including the Galaxy A25 5G. We will have to wait and see if they come with a higher price tag than their respective predecessors.
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