Wednesday October 26, 2016

Component Shortages Expected In PC market After November

According to this article, the increased demand for smartphone memory caused by the Galaxy Note 7 recall could impact the production of PC memory, leading to delays unless suppliers increase capacity to meet demand.

With smartphone vendors having been aggressively placing short-term orders for the fourth quarter, several component suppliers have been delaying their shipments to PC vendors recently and the action could relatively impact these PC vendors' shipments in the quarter. To satisfy demand from its smartphone clients, many memory component suppliers have shifted their capacity for PC memory to produce memory for smartphones, which has seriously delayed their delivery schedules from 10 weeks to over 20 weeks. Since memory components require a series of certifications and testing, the suppliers are unlikely to be able to shorten the delay.