Product shortages occur because of this simple equation: there's too much demand and not enough supply. That's certainly what appears to be happening with the Switch, Nintendo's newest hybrid machine that's selling like hotcakes.
Unfortunately, Switch shortages could continue well throughout the year, according to reports. If that happens, blame Apple.
How Apple Affects Switch Production
Apple might be directly affecting Switch production, according to a Wall Street Journal report on Tuesday, May 30. The article looked into the increasing pressure companies are putting on NAND flash memory suppliers and other makers of smartphone components.
Citing people familiar with the industry, the report states that smartphone manufacturers along with their ballooning demand for device components will affect the Switch's supply chain.
To be more specific, the Switch suffers insufficient supply of components such as flash memory chips, LCDs, and the special motors used to power its HD Rumble mechanism. Flash memory chips depend mainly on Toshiba's struggling NAND chip unit, according to reports. That unit is presently up for sale amid legal troubles plaguing the company. There are rumors that Apple is looking into purchasing a huge stake in Toshiba's NAND chip unit.
What's more, with the iPhone 8 believed to be unveiled this fall, surely Apple has begun manufacturing the flagship by now, if not earlier. iPhone 8 production, in turn, is reportedly affecting the Switch supply chain. Demand for the iPhone 7 and 7 Plus, too, might be adding to Nintendo's supply chain problems. For perspective, both the iPhone 7 and the Switch uses LCDs and various flash memory configurations.
Nintendo Switch Target Sales
Nintendo hopes to produce 20 million units of its new hardware by March 2018, the report adds. But because of the supply chain constraints, the actual target is only half of that figure. But if it can make more of them fast enough, the Switch stands to sell extremely well. During its first month, Nintendo managed to push 2.74 million Switch units, far ahead of its 2 million goal. That figure is even more impressive if one considers that March isn't a significant month for new console releases.
Nintendo Switch Shortages To Be Expected
Nintendo is set to release Super Mario Odyssey in the holiday season, the first true 3D Mario title for the console. Mario is Nintendo's biggest AAA title, and there's no doubt it'll cause problematic shortages upon release if Nintendo fails to fix its supply chain constraints.
To add insult to injury, Capcom recently announced that a port of Monster Hunter XX is heading to the Switch, an enormously popular series in Japan. Needless to say, the title could affect shortages even further. In fact, a special Monster Hunter XX Switch bundle sold out immediately upon availability.
At the end of the day, Nintendo must be enjoying the success of the Switch. Facing supply shortages is certainly a better problem than having low demand, like the Wii U, its now-discontinued console, previously suffered.
Thoughts about the Nintendo Switch? How do you feel about potential Switch shortages throughout the year? Feel free to sound off in the comments section below!
