Qualcomm struggles to keep up with the smartphone industry due to chip shortages, according to Reuters
These are bad times for the manufacturing of processors, or at least that is leaking from the industry. Apparently Qualcomm is having a hard time meeting the demand for processors, both for smartphones and for other devices, due to a shortage that has been sounding for months.
The information is given in Reuters from Qualcomm and Samsung own sources, two technological giants that base their business to a greater or lesser extent on the manufacture of processors and other chips. In fact, Samsung smartphones have both their own processors and third-party processors such as Qualcomm, and it is those of the American manufacturer who are making themselves beg.
The perfect storm that can last all year
A few months ago we echoed this shortage: at the end of last year there were already delays in the production of electronic devices like mobiles and computers due to it. The cause: a “perfect storm” due to the low investment by production plants in new technologies for more advanced chips, political factors such as the trade war between the United States and China, specific incidents such as the fire in a chip factory Japan or all the downturn that is economically and productively coronavirus pandemic (for example, to sell fewer smartphones).
According to the information, Demand for Qualcomm processors has skyrocketed in recent months partly as a rebound effect of Huawei’s complicated situation with the US blockade. This would be explained by looking at studies like the latest from Gartner, in which we saw that the most pronounced drop in sales was that of Huawei, and it is precisely this that would be encouraging its competition to try to satisfy all those users who would be looking for alternatives in other brands.
According to one of the sources, coming from a Samsung supplier, the shortage of Qualcomm chips is affecting mainly Samsung’s mid-range and entry-level models, precisely quite prolific ranges and with continuous renovations. In fact, the brand boasted a record quarterly revenue and I attributed it in part to the pull of these ranges in markets such as India.
A few days ago it was Cristiano Amon himself, CEO of Qualcomm, who she spoke that in his opinion the shortage can last until the end of 2021. This is in tune with what Lu Weibing, vice president of Xiaomi, stated that “it is an extreme shortage”.
We will see if he is right, if it is something that is maintained throughout this year and if it has consequences on the availability of final products or on manufacturers’ launches. For now, speaking of mobile phones, we are seeing a rhythm that does not seem very different from other years, with mobile phones from the main brands in most ranges, so we will continue to monitor the matter.