Samsung, Xiaomi, Qualcomm: Most of the problems of the Corona crisis have probably noticed, in some industries crucial components were becoming scarce. Only the smartphone business seemed to run smoothly without any major problems. The start of the new year with the second and third waves of the pandemic is causing the first serious failures at Samsung, Qualcomm and Co. However, not for reasons that one might initially suspect.
The largest smartphone manufacturer in the world is currently suffering from a shortage, according to a Reuters report, Samsung is running out of Qualcomm processors. While the demand for Qualcomm processors rose sharply, also because manufacturers such as Xiaomi and Oppo are extremely successful in selling their smartphones, Qualcomm is already missing important components for the smartphone platform chips to be produced.
Qualcomm cannot supply enough chips
“One person at a Samsung supplier said that a shortage of Qualcomm chips was affecting the production of mid- and lower-priced Samsung models. The second person at another vendor said it lacks Qualcomm’s new flagship chip, the Snapdragon 888, but didn’t say whether it would affect the manufacturing of Samsung’s high-end phones. “
Several smartphone brands have already confirmed the lack of Qualcomm chips to their colleagues, some anonymously. The Xiaomi boss even publicly described the outstanding deliveries as an “extreme shortage”. And so it is entirely possible that some smartphone models will be harder to come by in the coming months. The Android middle class is particularly affected.
Chip orders are getting out of hand: Demand is higher than supply
However, productions have not stalled because of Corona failures, but because the demand has increased enormously. But the very efficient supply chains cannot even be scaled accordingly, which leads to the aforementioned deficiency.
Then there are panic buying, which also causes prices to skyrocket. In the meantime, chip manufacturers are demanding even larger financial contributions from their customers. “Everyone orders like crazy,” says one of the co-founders of Roborock, “although they can’t even use all of the chips”.
“For example, a commonly used microcontroller chip from STMicroelectronics that was originally priced at $ 2 is now selling for $ 14, according to Case Engelen, CEO of Titoma, a contract designer and manufacturer.”