Worldwide electronics manufacturers are rushing to expand on memory chips to keep manufacturing lines operating since the launch of Apple’s new iPhone later this year intends to get worse on a global level of supply.
While tech majors such as Samsung Electronics Co. Ltd. and Apple (among which Samsung is the leader in production of memory chip) will not be fatally hit, industry analysts and sources claim some electronics manufacturer are paying a huge amount to get into longer-term deals.
Others companies are giving orders earlier than before to make sure their dangerously small inventories do no dehydrate fully.
“After the supply shortfalls came out, we introduced our procurement decisions to make sure a steady supply,” personal computer and smartphone maker, LG Electronics Inc., claimed in a statement, saying it had pushed up decisions of periodical acquisition by almost a month.
Chip making technologies are turning out to be more complex, elevating costs of investment and offering less output development since most of the suppliers struggle to advance their yields. This has resulted in some chip costs to triple or double as compared in 2016.
Most of the analysts claim that device manufacturers can be obliged to slash down on the quantity of NAND chips that are used for long-term data storage or DRAM chips, which assist devices to conduct multiple tasks at once, on fresh products if they cannot get sufficient chips.
A chip vendor source told the media that few clients have moved to six-month supply deal, agreeing to higher prices than the usual monthly or quarterly contracts, to make sure they get sufficient memory chips for their device.
“The issue will be more sensitive for the NAND industry, where the iPhone remains a grave source of demand due to the vast volumes of sales and new plans to elevate capacity of storage on the device,” claimed the source, which refused to be recognized as he was not certified to talk publicly on this issue.
Well, the upcoming iPhone is surely going to create havoc and its symptoms can be viewed already. So get ready to witness the all new iPhone soon.