Chip shortage that the damage of the smartphone market because of the successDocument Transcript
Chip shortage that the damage of the smartphone market because of the successAnalysis of the article said, cell phone chip supply can not meet the needs of the facts show thatthe smart phone business is compromised by its own success. The article pointed out that thechip shortages could lead to Apple, HTC and Samsung and other manufacturers of mobile phonesupply is restricted, this challenge is a barrier to the growth of the smartphone market. Faster Verizon Wireless and AT & T wireless network running on the development of anew generation of smart phones may be hindered, is a key component manufacturers can notkeep up with demand growth.The worlds largest cell phone chip maker Qualcomm said last month that the company can notobtain a sufficient supply of the latest so-called baseband chips ". The largest contractmanufacturers in this industry, TSMC has said that the company needs to increase the number ofmachines in order to keep up with the orders of the demand. Qualcomm is a leading provider of LTE chip, this chip provides the fastest Internet access speeds.This means that the chip shortages could lead to new phone vendors such as Apple, HTC andSamsung supply is limited, this challenge is a barrier to the growth of the smartphone market.According to data released by the Bloomberg industry, it is expected that the smartphoneproduct category will be created about $ 219 billion in revenue this year. Market research firm Strategy Analytics analyst Sravan Kundojjala said: "This appears to be a bigproblem, because Qualcomm is a single source in the LTE market, regardless of which company -Korea, Japan and the United States, this market is very important - will face a shortage of supplysituation. "iPhone and other smart phones are taking on more of the daily computing needs, while the LTEnetwork will give users faster Internet access speeds, and user-friendly Internet, downloadingapplications and streaming video. This fourth-generation system is first introduced inmetropolitan areas will then be introduced in more areas worldwide. Apples next-generationiPhone is expected to be released later this year, analysts said this phone is likely to be run on afaster network.Support both LTE and legacy networkLike other companies, Apple also rely on Qualcomm LTE components, which is headquartered inSan Diego, is only capable of delivering the same time provide the LTE network and the oldnetwork to connect the semiconductor chip manufacturers - According to market research firmStrategy Analytics said semiconductor right to limit the number of chips in the phone, keep thephones tiny size and does not damage the battery life is essential. Therefore, this semiconductorproduction for almost all new mobile phones will be released this year are to the key. Kundojjala said: "Current only (semiconductor) market (with the practitioners of this ability) is
the high-pass, all other companies are catching up." He also added that this years new LTEbaseband chip demand will be at least will reach 30 million, but Qualcomms supply can onlymeet half the demand.Qualcomm CEO Paul Jacobs (Paul Jacobs), said the company is trying to cultivate other suppliersto produce its chips, the goal is to meet the needs of all orders received by the company beforethe end of the year. TSMC has increased spending in its factories, also plans to meet all orders, inthe fourth quarter. Sharp rise inWalter Price (Walter Price), a fund manager at RCM Capital Management, asset managementcompany, said: "(a shortage of high-pass component) is resulting in huge pressure on the industryas a whole, this market is definitely rising rapidly.The smart phone has replaced the PC business has become the engine of growth "of thetechnology industry." According to data released by market research firm Gartner, it is expectedthat in 2012 global smart phone shipments will reach 655 million, well above 299 million in 2010;compared with the expected PC market at this stage. The growth rate is only about 5 percent to368 million units.Occupy a dominant position in PC chip market, Intel, Qualcomm, Broadcom and other smartphones key semiconductor manufacturers have been outsourcing to create their own success.Outsourcing vendors But today, this strategy is to cause trouble, because chip makers can not keep up with demand.TSMC and Asia, many other so-called "foundry" in the form of outsourcing contracts tomanufacture chips, but these companies have been unable to meet the production needs of alarge number of increasingly complex processors and baseband chips. Chip production machinery supplier KLA-Tencor CEO Rick Wallace, Rick Wallace, said: "hugedemand for these companies to a large extent by surprise. They are in production capacity tomake progress, but from the need the standards achieved there is still a long way to go. " TSMC occupies the leading position in this field means that the lack of UMC andGlobalfoundries and other alternative providers TSMCs competitors are facing the plight of hardto keep up with the latest production technology. Credit Suisse analyst Randy Abrams, RandyAbrams, said that even if the other outsourcing vendors also have the capacity and technology,customers need up to nine months time to complete the move to a new supplier of technicalprocess. NVIDIA with HTC
NVIDIA CEO Jen-Hsun Huang (Jen-Hsun Huang), said the company could not get enough of thelatest graphics chip supply from TSMC, where to meet demand. Jen-Hsun Huang said in aninterview last week, his own choice of production based on older technology, Tegra mobile phonechips are pleased.The pain from the chip shortage may not be fair to assume the smartphone vendors RCM fundmanager Price said, Apple and Samsung occupies the leading position in the smartphone marketis growing, they are more important for suppliers, so the parts supply to the top.Richard H (Richard Ko), investment company KGI Securities analyst, said the fifth-largest smartphone manufacturer HTC and other companies may suffer the greatest pain due to supplyshortages. He predicted that this quarter HTC smartphone shipments will be reduced by up totwo million. Richard Gao further pointed out that: "by a shortage of supply in the most advancedin the field of smart phones, the HTC the leading position in the window of opportunity is gettingsmaller." HTC declined to comment. Apple and SamsungManufacturers as the best-selling smart phone iPhone, Apple also not immune to be a shortageof supply. From Qualcomm in short supply situation has prompted the U.S. investment firm PiperJaffray Piper Jaffray, analyst Gene Munster (Gene Munster) expected launch date of the nextgeneration iPhone will be later than expected. Last month, Apples stock price fell sharply within10 days 10% supply shortage, in part because Qualcomm.Cook on April 24, said: "We are working to expand very closely with supplier partners, to take anymeasures that we can do to get the supply. Sometimes we succeeded, sometimes we will focuscommitted to addressing the potential impact on our things, and try to press any button on thecontrol range to solve the problem. "Samsung is not only a smart phone manufacturers, but also the worlds second chipmanufacturers, and Apple from Samsung to buy chips. Compared with other smartphonemanufacturers, the two companies dependent on supply of high-pass is not strong, so the impactmay be smaller.Flexibility Samsung has already surpass Nokia in the last quarter, becoming the worlds largestsmartphone maker, the companys smart phone components are produced. Samsungsmartphone shipments in the first quarter, a substantial increase of 267%, Apple rose 89 percent.This compares with the other companies in the worlds top five smartphone vendors inshipments fell. Samsungs e-mailed statement, said: "The strong relationship between the Samsung and anumber of suppliers has brought us the flexibility to respond quickly to changes in consumer andmarket demand."
According to market research firm IDC, 1.5%, while smartphone shipments have increaseddrastically to 43% decline in the overall mobile phone market, increasingly shows the importanceof the smart phone market. The smart phone in the overall mobile phone market share has morethan one-third of last years first quarter compared to 25%.Andrew Daly (Andrew Dailey,), a California company from MGI Research to study the supply chain,Managing Director, said that the reason why chip vendors did not provide enough capacity,because they do not believe that the smartphone maker said the market growth rate. He pointedout: all from the bottom of my heart that, like the market and trees, the president of thecompany not to break through the height of the sky. "