Apple iPhone Cause For Shortage Of DRAM And NAND Chip For Other Companies: Apple’s upcoming iPhone 8 is becoming the reason for the shortage of DRAM and NAND chips facing by other manufacturers due to much components orders are placed by Apple for upcoming three models that are expecting to launch this year in the month of September, as suggested by a new report from Reuters. It is also reported that the other companies are paying more amount for the chip to fulfil the demand of the components and it could also be possible that if the companies will not be able to buy sufficient quantity of the components, then they even have to compromise in specs of their smartphones which will be very disappointing for them and for consumers too.
Reason For Shortage Of DRAM And NAND Chip
To ensure the smooth supply of chip, some companies are also ordering the chip on before the demand. LG Electronics which is among large companies are also facing the problem and trying to be sure that they will have enough supply of the components, as in a statement LG said:
“After the supply shortages emerged we brought forward our procurement decisions … to ensure a stable supply”.
Reuter’s report also highlighted that, according to SK Hynix – NAND chip maker, the supply status of the chip is “tight” and inventory level of the chip is the condition of all time low, further added, there also not any accurate report when the level of the chip will attain normal inventory condition.
Some analysts say device makers could be forced to cut down on the amount of DRAM chips, which help devices perform multiple tasks at once, or NAND chips that are used for long-term data storage, on new products if the cannot get enough chips.
The analysts are saying that the Apple is moving towards to provide more storage space in smartphones in recent years, and this will make the effect at the supply of NAND chip for other companies as the component makers are giving priority to orders from Apple.
“The problem will be more acute for the NAND market, where the iPhone remains a critical source of demand given the huge sales volumes and recent moves to increase storage capacity on the device”, said by source.
The Huawei already get affected by the short supply of chip as the company had used “less advanced chips” in its flagship smartphone P10, and it was also faced criticism from customers for the less powerful chip.
It is estimated report that near about 18% of the world supply of NAND chips are only purchased by Apple and this percentage may increase with the success of upcoming iPhone 8 in coming a time as Apple will supply more units of iPhone 8 to fulfill the demand. The supply of NAND and DRAM chips are assuming to remain short until 2018 as analysts are believing that the Apple may sell around 100M units of iPhone 8 this year.