As Nintendo plans to ramp up production and demand for these components for the Switch, so too is Apple planning on an ambitious season of production and sales as it ramps up to release the iPhone 7 and a special model to celebrate the 10th anniversary of the iPhone.
Here's the deal: Nintendo has told suppliers and assemblers that it wants to produce nearly 20 million units of the Nintendo Switch this fiscal year.
The main components that are short are the NAND Flash Memory chips for data storage, LCD displays, and "tiny motors that enable the Switch's hand-held controllers to imitate the feel of an ice cube shaking in a glass". According to the report, there is an industrywide shortage of components used in "smartphones, computer servers and other digital devices".
"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", said a spokeswoman at Toshiba Corp. With the movement to cloud-based computing in the USA picking up, sales of servers that use flash memory are increasing, noted the report. Nintendo has long said it doesn't want to produce the Switch at a loss, but if it spends a lot more to secure supply of certain parts it could push the cost over the retail price of $299. We're talking roughly 18 million units produced by next March. Though the company's official sales target for the year is 10 million, strong demand suggests it can sell many more-if it can make them. It uses a dock when it functions as a console and switches to portable mode when lifted out of the dock. In its first month on store shelves, the company said it moved close to 1 million Switch units in the USA and that it sold faster at its launch than any other video game system in the company's history.