Nintendo has recently commented that it’s trying solve the current supply shortage of Nintendo Switch by increasing its production, in order to achieve 20 million consoles manufactured in the fiscal year ending March 2018. However, The Wall Street Journal reports in a new article that the Japanese company could find some fierce competition from Apple and other internet-based companies for the components necessary to build the hybrid console.
The massive production of smartphones, flash memories, and other electronic devices has made component makers feel overwhelmed by the demand of NAND flash-memory chips that store data, liquid-crystal displays, and the motors that make the new HD rumble work.
A spokeswoman at Toshiba says: “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.” She also cited Apple and other Chinese companies as the ones making the bigger demand for their components.
Apple is currently developing its 10th anniversary iPhone set to release in September, while data centers need flash memories to keep up with the growth of the digital market. According to the Wall Street Journal, the problem comes when both groups are in a better position than Nintendo to make a deal with manufacturers. Apple and other smartphone designers usually make bigger and more lucrative orders, while the data centers are willing to pay more for the latest technology in flash memory.
Paying more for the components doesn’t seem like a good solution for Nintendo either, since that would make the price of the console to rise beyond the current $299 retail price. However, Nintendo president Tatsumi Kimishima has spoken publicly about his will to avoid selling the console at a loss.
Nintendo Switch is officially estimated to sell 10 million consoles in the current fiscal year. We will see if the company manages to increase the production and beat its expectations.