New smartphone arrivals delayed due to chip shortage; Might affect the global economy

Shortage in chips has made a delay in the arrival of new smartphone devices. Some of the companies have just announced that they’re pushing back the smartphone’s launch by a couple of months due to this shortage. Because of this shortage, many companies have also reduced or paused the manufacture of their products too. Efforts are also being made to introduce new models only in select countries.  Most of the companies are planning to make the most of the existing models ahead of the festive season using the existing stock. 

The system-on-a-chip is the brain of your smartphone. Combining multiple components into a single chip saves on space, cost, and power consumption. Essentially, an SoC is the brain of your smartphone that handles everything from the Android operating system to detecting when you press the power off button.

Google and Jio, have planned to introduce new smartphones but they also have stepped back due to the crisis. The real reason for the shortage is unknown but companies say that additional time will “help mitigate the current industry-wide, global semiconductor shortages.

Companies have introduced more than 207 models in the Indian industry in 2020. But this year the count might get reduced to 190 due to the chip shortage. From January to June this year, 117 new models were released.  

The festive season in the country which lasts from September to December is the time for Selling the phones.  Also, one-third of annual sales take place during this time.  The rise in the price of memory and processors in the global sector has gone up by up to 20 percent. This is also a matter of concern. Along with that, the cost of importing components also rose sharply. This may be reflected in the price of both smartphones. However, Chipmakers Intel and Integrated Microelectronic say that the shortage could continue for two years.