Your Next Phone Is Getting Pricier Amid Chip Shortage

Smartphones are getting more expensive, and the reason starts with tiny computer parts called chips.

Many phone companies need these chips, and so do the giant computers that learn new things, called artificial intelligence.

Because so many people want chips, they cost more money to make and buy.

Some phone companies are making their phones cost more money, while others keep the price the same but put a weaker brain inside the phone.

Buying a new phone during the big Diwali festival may not save much money this year, because phones will cost even more by then.

Some smart shoppers buy last year's top phone instead of a new cheaper one, because it still works great for less money.

Others fix their old phones or buy phones that someone else used but were checked carefully.

If you buy a used phone, remember it may not get new software updates for as many years.

The best plan is to think about how long you will use the phone and what it is worth, just like a big money decision.

So before buying, compare prices, check battery health and warranty, and decide what fits your budget.