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An international crisis of microchips shortage — for computers, smartphones, etc. — has affected many machines such as automobiles, video games, and now, cellphone’s seems to be the next target on the list. The production of microelectronics has been limited throughout 2021 due to a heavy amount of factories closing their doors since the COVID-19 pandemic. As something that has affected many states, the delayed production of goods has caused a high demand for consumer electronics.
The decrease of computer chips has impacted automakers the most since it resulted in major businesses such as General Motors, and Ford. This caused a setback for the production of vehicles they planned on releasing very soon.
Gaming companies, such as, Microsoft, and PlayStation, have struggled to release their new consoles globally on the shelves due to the shortage, which is troubling for citizens who were looking forward to getting these consoles as fast as possible.
But manufacturers like Apple and Samsung have made sure their cellphone products would be the least affected by the fallout by storing up critical components.
CCS Insight’s chief examiner, Ben Wood, stated to CNBC that the automotive industry is not on the same level as the cellphone creators when it comes to anticipating demands for their products. Right now, automotive sectors seem to have more problems in their hands than the people working on the cellphones.
Since automakers rely heavily on larger, older chips, and phone makers rely on the latest central processing units, smartphones have managed to have the highest sales on the market than vehicles. This resulted in making customers prefer to spend their money buying and fixing smartphone devices over vehicles.
For the moment, Syed Alam, Accenture’s worldwide semiconductor lead, informed CNBC that companies who produce phones have not dropped their demand for chips, unlike the automotive sector that did the exact opposite when they anticipated a downward spiral in demand for cars.
But now, mobile businesses are now becoming fully impacted by the decrease of global chip storage.
Written By Ramses Sanchez Cantu
Edited by Sheena Robertson
Sources:
CNBC: The global chip shortage is starting to hit the smartphone industry; Ryan Browne
Featured and Top Image Courtesy of Nicolas Nova’s Flickr Page – Creative Commons License
Inset Image Courtesy of Michael Bernath’s Flickr Page – Creative Commons License