Economy

Taiwan Shoppers Put Off Electronics Purchases as Prices Rise

Published

By Alex Chen/Shir Bashi/Yvonne Yang

Open in App

Taiwanese consumers are becoming more cautious about buying new electronics, with willingness to purchase durable goods, such as phones and laptops, falling to a 17-year low, according to a report by National Central University. Researchers point to rising device prices as a factor behind the decline. Industry analyst Chris Hung says strong demand for AI computing is affecting component markets and supply chains, potentially keeping finished-product prices high. Consumers in Taipei say they are considering delaying upgrades because of the cost. With the year-end shopping season approaching, weaker buying intentions could mean fewer new electronic devices sold during a traditionally busy period.

In Taiwan ... October through November is usually a peak period for buying consumer electronics...but a National Central University report suggests that that may not be the case this year...
Specifically, willingness to buy what the report calls durable goods, things like phones and laptops, has hit a 17-year low. The study suggests that's because prices for those devices are rising.

DACHRAHN WU, NATIONAL CENTRAL UNIVERSITY:
"When product prices are high people make decisions more cautiously that's why our durable goods index has fallen so sharply this time."

The increasing demand for AI is behind the price rises.

CHRIS HUNG, MARKET INTELLIGENCE & CONSULTING INSTITUTE:
"The demand from AI computing investment will drive the entire component and supply chain to adjust so the prices of finished products will probably remain high."

On the streets of Taipei, consumers agree that they'll hold off for now.

VOX POP 1:
"I think it's too expensive so I'd postpone it. Replacing my phone is too expensive for me."

VOX POP 2:
"We'll put off replacing things. There's nothing you can do about it. If AI is to develop, this is the only way."

With decreased willingness to buy ahead of the holiday season, there could be fewer new devices under Christmas trees this year.

Alex Chen and Yvonne Yang for TaiwanPlus.