Pages

Mobile Companies still in crisis as the chip shortage continues globally

The pandemic when occurred changed a lot of ways things operated in the world, slowing down business and ultimately affecting a large population.

Among many, one industry which was significantly affected was the mobile market. The year 2020 was not only the time Covid spread worldwide, but the shortage of chips the same year was the reason a lot of mobile companies slowed down production.

However, while the lesson was learnt in 2020 and all hardships were expected to be over as smart phone vendors had placed their orders in bulks by the end of 2020 so that the year 2021 goes smooth for the industry.

Though while the initial quarter of 2021 went pretty smooth, the vendors started complaining about receiving only 80 percent of their placed orders in Q2 and Q3 looks even more serious with vendors expected to receive only 70 percent of their orders placed. All this together will slow down the production and sales of mobile phones ultimately affecting the market.

But what was the reason that the chip production had been so slow this past year. Well, to start off the pandemic slowed down a lot of things and disrupted the production of chips. Secondly, the chips are now being used in the automotive sector vastly and hence the demands have increased. Lastly, with the increased demands and decreased production the ratio of production and use has been affected severely, with chips being produced less in numbers and its demand increasing greatly.

According to the Counterpoint Research, 90 percent of the industry has severely been affected because of this crisis.


However, while most Androids phones are facing difficulty, Apple is at ease right now. The company has a power and supply chain expertise which enables it to place and receive orders way long in advance and hence the dreaded mobile industry fear of lack of parts and chips hasn't hit the tech giant yet with iPhone 13 range making its way on time this year.

Apple though is safe, the company believes if things went on like this they soon will be joining the bandwagon with its Mac and iPads range being affected first and iPhones following later.

So though the hit might look less severe for Apple, it is inevitable for them too if things remain like this.

The annual shipped units for 2021 were expected to grow by 9 percent, however considering the currently circumstances the percentage now looks around 6 at most.

The mobile industry has severely been affected in the past two years and if things remain like this it doesn't look good for both the vendors and mobile phone enthusiasts.

Read next: Q3 2021 Sees Worldwide App Revenue Increase by 15% Year on Year

No comments:

Post a Comment