The shortage has not only affected chips meant for mid-and low-end Samsung phones, but also the Snapdragon 888 which power the Galaxy S21 series.
It’s not clear if this has impacted the manufacturing of the S21 phones, which would be unfortunate to say the least, as the handsets are reportedly performing better than their predecessors.
Although Qualcomm is still confident that it will be able to meet its sales target for the second quarter, a contract manufacturer for several major smartphone companies told Reuters it would cut smartphone shipments because it was experiencing a ‘shortage of a range of components’ from the chipmaker.
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- Galaxy S21 sales take series to four-year high
- Qualcomm may have been trying to buy enough Snapdragon 888 chips for flagship phones
Xiaomi’s vice president Lu Weibing had previously cautioned that the chip shortage was extreme.
Qualcomm’s incoming Chief Executive Cristiano Amon had recently said that demand was higher than supply. This might partially be because of restrictions placed on Huawei by the US, which have caused consumers to turn to other Android companies which typically use Qualcomm’s chips. Huawei’s phones are mostly powered by its own Kirin silicon.
Price of Galaxy Products:
- Samsung Galaxy S21 Ultra 5G 256GB
- Samsung Galaxy S20 Price and Specifications
- Samsung Galaxy S20 Plus 512GB (5G)
The semiconductor industry is tightly integrated and even seemingly minor shortages could lead to increased lead times. The shortage is also leading to panic buying and driving up costs. For example. a microcontroller-unit chip from STMicroelectronics, which used to cost $2, now sells for $14.V