The smartphone production is affected by the chip shortage

Will the chip shortage affect the wholesale mobile phones market

? According to the report of the media, due to the economic slowdown last year, the smartphone manufacturers are tied to the chip shortage and can't produce enough phones to meet the needs of the market at all.

It's estimated that the chip shortage will run through the US holiday shopping season. It's hard for the competitors of iPhone to produce enough phones for the competition. It also has an influence on the wireless operators. Some operators have put off the upgrading of the network. It can even affect the price of the computer.

If one kind of the required processing chip is scarce, the whole production process will come to a standstill. According to the report of Associated Press, Sprint Nextel Compnay is unable to meet the needs of the HTC EVO 4G in some areas in United States. Meanwhile, the Motorola Company also said that they are unable to supply enough new DroidX phones for Verizon Compnay.

At present, all the OEM factories are trying to improve the production. The press quoted the words of Linley Gwennap - the president of The Linley Group Research Company, "the semiconductor industry is trying their utmost to speed up the production."

The investment in the global semiconductor industry is also increasing. According to the estimate of the Gartner, the investment will increase by 84% this year. The total investment will go up to 47.5 billion dollars. However, several months time is needed to build up the new production line and upgrade the exsited line.

Though the consumers should take more time to wait for their favorite phone, the price is unlikely to go up. The wireless operators will provide extensive subsidies to phones they are selling. The consumers of other electronics may not be that lucky. iSuppli Research Company said, the price of personal computer may go up because of the shortage of the memory chip.

The wireless operators which want to increase the network capacity will also be affected by the chip shortage of computer, network device and mobile phone. The Alcatel-Lucent and Ericsson both have the shipment problem. They are the providers of AT&T. And AT&T also presented that the expanding speed of the wireless data network can't keep up with the increasing iPhone flow.

The network equipment manufacturer Cisco also estimated that the chip shortage would continue until the end of the year. The president of Cisco John Chambers said, "We will still have the purchasing problem of accessories in the quarter. At present, the delievery time of the providers is settled, but it's still longer than we expected."

Different from others, iPad and iPhone 4 have no the purchasing problem of chip. Gwennap said it may benefit from the luck or the position as a king in the market. He told the Associated Press, "As the chip providers, you are certain to provide the service for your best customer. If I get to make a choice between apple and other smaller customers, I may provide all my items to the apple company."

The smartphone production is affected by the chip shortage

By: Tracy

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