Why Smartphones could soon become a little bit expensive

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So, what’s the most important component of a smartphone?

Most will probably say the display, as it is the component that we interact with on a daily basis. However, the battery remains the most critical component in smartphones as well as feature phones.

A recent development in the Democratic Republic of Congo (DR Congo) has the potential of increasing the licenses companies pay to mine Cobalt, a mineral used in the manufacture of rechargeable batteries.

The government of the mineral-rich Central African country has increased the loyalties mining companies pay for the mineral by up to 300%. It’s likely the increase will increase the bill of materials.

This comes in the backdrop of an increase in the demand for rechargeable batteries to cater for smartphones and electric cars manufacturing.

Congo owns about 60% of the global cobalt supply and thus the move to affect the price of cobalt is significant.

Major smartphone manufacturers such as Apple and Samsung have already moved to adjust their supply chains to accommodate the move and more vendors are likely to do so in the coming months.

It will therefore, interesting to see the ripple effects the move by DRC will have of the global smartphone manufacturing supply chain.

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