Competition For Components From Apple And Other Manufacturers Cause Nintendo Switch Shortage

Reports indicate that the shortages being experienced with the Nintendo Switch can be attributed to smartphone makers such as Apple who are also competing for the same parts which the gaming company requires for its Switch console. Apple is especially said to be a big part of the problem since it is in the process of releasing the iPhone 8. There is also the ongoing demand for the current existing versions of the iPhone as well as Apple’s other products such as tablets.

Sources say that Nintendo is specifically unable to get components such as liquid crystal displays, NAND flash memory and motors. Currently, Nintendo gets its NAND supplies from Toshiba which is struggling financially.

“Demand for our NAND flash memory has been overwhelmingly greater than supply, and the situation is likely to stay for the rest of this year,” a Toshiba spokesperson said.

NAND flash memory

Besides Apple and other smartphone makers the Toshiba spokesperson also added that demand was also high from Chinese firms as well as from data centers across the globe. Data centers also use NAND flash memory.

Nintendo has set a target of selling approximately 20 million units of the Nintendo Switch in the current financial year which ends next year in March. That goal is now in danger of going unfulfilled despite the fact that there is strong demand for its latest console which features an LCD display that is multi-touch and internal memory of 32 gigabytes. In the first month after launch about 2.74 million units of the Nintendo Switch were sold.

Better prices

According to analysts, the reason Nintendo is not getting the components it needs is because rivals offer terms that are better than it does. Additionally makers of smartphones such as Apple make orders that are far larger than the ones Nintendo makes. This leaves Nintendo at a disadvantage as component suppliers will naturally give preference to other firms offering better value and this has led to the shortage of Nintendo’s products.

Nintendo is unlikely to offer better terms to the component suppliers and manufacturers since Tatsumi Kimishima, the president of Nintendo has indicated that he won’t increase the retail price of the Nintendo Switch which currently is $299. As a consequence of the supply shortages and the delays that might result, reports also indicate that Nintendo might have to deliver its Switch console to the United States by air at the onset of the holiday shopping season.

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