BERLIN: Consumers should brace for noticeable price increases and a reduced choice of many popular electronics this year, as the global artificial intelligence (AI) boom reshapes the semiconductor industry, analysts say.
Consumers have already been feeling the cost of AI's rapid expansion, as various countries race to build massive data centres which require RAM and other hardware, with many component prices doubling – sometimes even tripling or more.
Ahead of Europe's largest consumer electronics show, the IFA, taking place in Berlin Sept 4 - 8, market research firm NIQ said anyone planning to buy a new device in the coming months will feel the increase in price.
The shortage is felt most acutely in computing-intensive product categories, such as smartphones, laptops, PCs, gaming hardware and game consoles, current market figures from NIQ show.
Production capacity for chips is shifting massively toward the expansion of high-performance data centres, which makes modern processors and fast memory modules increasingly scarce in the consumer goods sector.
Manufacturers are adapting their strategy to the bottlenecks by focusing primarily on high-demand configurations such as 256 or 512 gigabytes, trimming the range of models on offer and raising prices. Budget entry-level devices can barely be offered under these conditions.
Higher prices, but no supply halt
NIQ industry expert Alexander Dehmel stopped short of warning of a widespread crisis like the one seen in 2020, but cautioned buyers to expect noticeably higher costs.
Consumers are not facing a general halt in supply, he said, but certain high-performance configurations with large memory capacities will become more expensive or will at times only be available with longer waiting times.
Beyond the semiconductor issue, changing environmental conditions and new lifestyle habits are shaping this year's trade show trends. This is most visible in the market for cooling and air-conditioning equipment, where heatwaves in early summer triggered an immediate surge in purchases.
Another focus of the fair is the shift in consumer electronics toward personalised health care. The segment is driven by the mega-trend of "longevity" – the desire to extend the span of healthy life.
Thanks to improved sensors and AI-assisted analysis, wearable devices are increasingly functioning as a digital health dashboard for vital parameters such as sleep, heart rate, stress levels and blood oxygen saturation.
The fastest-growing segment is smart rings. With an average selling price of around €290 (RM1,361) in Europe, they are establishing themselves as a discreet alternative to the conventional smartwatch.
Privacy debate puts the brakes on AI glasses
Smart glasses with audio, camera and AI functions are also moving out of niche territory: unit sales nearly tripled in the first half of the year, from just under 3,500 to more than 12,000 devices sold.
However, privacy concerns around integrated cameras remain the biggest obstacle to a mainstream breakthrough. Women in particular fear being stalked or spied on by voyeurs using camera-equipped glasses.
On the IFA innovation stage, humanoid robots and advanced assistance systems are taking centre stage, with demonstrations moving ever closer to practical use in the home, in care settings and in industry.
Numerous international manufacturers are showing how two-legged machines, powered by generative AI and sensitive sensor technology, are learning to perform complex gripping and assembly tasks, interact with people and – in time – make the transition from technological showpiece to everyday household and workplace assistant. – dpa
