Component orders for the iPhone 8 are creating a worldwide shortage of DRAM and NAND chips, with competitors struggling to secure their own supplies, says a report.
Some competitors are placing orders well before they need the chips, others are paying premiums to ensure a supply and – in the worst of cases – may even be forced to reduce the specs of their phones if they are unable to buy the chips they need …
Reuters reports that even large companies like LG are being forced to act.
Smaller suppliers may be forced to cut back on both RAM and flash storage.
Huawei has already used less advanced chips in its flagship P10 model, while component shortages are said to be limiting production of Nintendo’s Switch.
Camera sensors are another component in high demand, with Sony reportedly prioritizing orders from Apple and three other major brands.
An unnamed chip supplier said that the iPhone was in large part responsible for the flash storage shortage.
Analysts estimate that Apple buys up around 18% of the world supply of NAND chips, and that this percentage could increase significantly if the iPhone 8 is a success. Some analysts predict that iPhone 8 sales could hit 100M units this year.
While suppliers are working hard to bring additional capacity online, the long lead times means that demand is expected to continue to exceed supply until some time in 2018.
Photo: iFixit
