How is the Global Shipping Crisis Affecting Mobile Phones?
September 15, 2021
The beginning of 2021 saw a sharp rise in shipping costs across different freight options, coining the “global shipping crisis”, with some seeing rates triple in price.
The disruption from the pandemic and local lockdowns have impacted this, but as the world begins to open up again, demand has increased leaving many products in short supply.
What Shortages Has the Global Shipping Crisis Caused?
Although the manufacturing industry has seen an increase in operations since the global pandemic, disruptions and shortages are being experienced. Computer chips have specifically been in short supply this year which, in turn, has severely impacted many other sectors.
The automotive industry, gaming industry, and other technology requiring semiconductors and computer chips have been significantly affected by this shortage. Limits on production of certain vehicles and games consoles have had to be implemented, and it looks like smartphones are next to be impacted by the global shipping crisis.
The Effect on Mobile Phones
Major manufacturers like Apple and Samsung stockpiled critical components before the global shipping crisis, however the current supply constraints may soon start to affect production and sales.
The shortage of computer chips concerns the everyday functions of smartphones, such as displays and audio, and without this support, these devices are deemed nearly useless. The price of these key components has risen over the past few months which is negatively impacting manufacturers’ production forecasts. This unfortunately means that higher prices for smartphones and shortages for certain models will be expected.
Even though it is unclear specifically which devices will be affected, it is predicted that smaller manufacturers, like Lenovo and TCL, and lower-end models will be the ones most likely at risk.
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