Semiconductor shortage worsens smartphone vendors' sales goals

The chip shortage has affect all brands of smartphone in the present situation

Smartphone industry was all set to bounce back this year after Covid-19 pandemic but semiconductor shortage has effected the smartphone vendors and crippled them.
According to reports, the total units transported for 2021 are expected to grow by six per cent annually to 1.41 billion units which was expected to grow nine per cent annual growth to 1.45 billion units for 2021.
The chip shortage has affect all brands of smartphone in the present situation. Brands like OPPO, Samsung, Xiaomi have all been affected while Apple seems to be the most resilient and least affected by the AP shortage situation.
The smartphone vendors had placed a huge chunk of orders from the end of last year, and consumer demand coming from delayed replacement purchases had affected the market in the first quarter.
Some of the smartphone makers has said that they are only receiving 70 per cent of their requests and multiple problems are created.The impact will remain till the second half of 2021.
While in the case of application processors (APs) the shortage was mainly triggered by low-yield rates in newly-established fab lines and in the present situation, it caused a chain reaction throughout the industry. APs are one of the most important elements of the smartphone.

India Scanner News Network

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