Two smartphone manufacturers Samsung and Huawei, threatened to stop production of smartphone at an affordable price, because of the global scarcity of chips. Reportedly both of them will focus on production of flagship phones with the available chips.
Bloomberg reported, Samsung will delay the launch of the latest Samsung Galaxy S21 FE (Fan Edition) which should be released in August 2021. South Korean media Electronic Times Reported, the production of a cheaper version of the Galaxy S21 was suspended due to a shortage of processors from Qualcomm.
“While we cannot discuss product details that have not yet been released, nothing has been determined regarding the alleged suspension of production,” Samsung said in a statement.
Previously, Samsung admitted it was grappling with the effects of chip scarcity globaly. Samsung Co-CEO Koh Dong-jin even predicted that a chip crisis will cause problems for the company’s business in the coming quarters
Samsung also skipped the release of the new Galaxy Note series, which is one of its best-selling models for the year, though Koh said it was geared towards streamlining the product lineup.
“There is a serious imbalance in supply and demand of chips in the IT sector globally,” Koh was quoted as saying by Bloomberg.
Huawei is reportedly leaving the low-cost cellphone segment
Switching to Huawei which is rumored to also have a similar problem of global chip scarcity and various problems with smartphone business. Various US sanctions have made it difficult for companies to obtain critical components of smartphones, and seems to be the lacking of chip in China made them abandon lower-end models entirely.
Quoted by Gizmochina, Huawei employees leaked that almost all smartphone models at the official Huawei store in China is out of stock, with certain configurations and color variants also not available.
One of official Huawei store in Chengdu, China, a salesperson who said that the Nova series aimed at the lower middle class is no longer produced and the cheapest variant currently available is the Nova 8 Pro which is sold at a higher price.
Huawei seems to be selling fewer smartphone now, which is most likely due to the fact that China is facing a shortage of smartphone chips. Not only China, the world is also facing a huge shortage of chip components today, with various industries being severely affected.
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