Qualcomm is struggling to meet rising demand for its Snapdragon chipsets, with several supply challenges that affect its production strategy. Cascading effects can bring more priority to the premium layer over more accessible devices and longer waiting times for orders.
Samsung supplier sources – the most popular Android phone brand and production partner for the Snapdragon chips – told Reuters that the Korean OEM is facing shortages across the Snapdragon line, up to the flagship Snapdragon 888. It was not said whether that translated in a slowdown in smartphone production. Meanwhile, a smartphone ODM executive with several major brand contracts says his company will have to cut shipping forecasts this year because of a general shortage of Qualcomm components.
Some factors are suspected to contribute to the tightening, some of which include: the devastating winter storms in Texas that cut the power off a Samsung factory that makes radio frequency transceivers for Qualcomm; a slowdown in the production of energy management chips in China and Taiwan, and; Panic and scarcity of purchases in the broader chip market, which skyrocketed prices exponentially without the guarantee of inventory arriving on time. Qualcomm is reportedly targeting most of its precious components to build more Snapdragon 888 products than low-end chips.
What hasn’t helped are Huawei’s burdens – the Chinese phone maker is banned from importing from the United States which effectively prevents the company from using goods, services and intellectual property such as the Android operating system, Qualcomm parts and Arm chip designs. As such, those who were once fans of the company’s affordable yet powerful phones have had to contend with major product changes or, more likely, switch brands.
If you are considering buying a phone this year, consider this as a sign to complete your purchase sooner or later.
