A new article by The Wall Street Journal today has taken a look into the increased pressure put on suppliers of NAND flash memory units, as well as other smartphone components, and how Apple might be indirectly affecting the supply of the Nintendo Switch. According to people in the industry, smartphone makers -- namely Apple -- and their increasing ramp-up on component manufacturing for high-end devices have led to dwindling supplies of Nintendo Switch.

Specifically, Nintendo is lacking components related to NAND flash-memory chips, liquid-crystal displays, and the motors used in the Switch's HD Rumble feature. NAND memory chip supplies are said to be placed mainly upon the shoulders of Toshiba's struggling NAND chip unit, which is still up for sale despite legal troubles that have plagued the company over the past few weeks. In April, Apple was rumored to be looking into spending several billion for a "substantial stake" in Toshiba's NAND chip unit.

iphone vs switch
Apple's manufacturing ramp-up on the upcoming "iPhone 8" is said to be behind some of the supply chain constraints faced by Nintendo, as well as ongoing demand for the iPhone 7. Currently, Apple manufactures iPhone 7 with an LCD display and various internal sizes of NAND memory. The Nintendo Switch has a multi-touch LCD display and 32GB of internal memory.

People in the industry say the rapid expansion of web-based services for corporations has driven demand for computer servers that use flash memory. Continued demand for Apple’s iPhone 7 and a 10th anniversary model of the iPhone expected later this year are also keeping parts makers at full capacity, helping power Japan’s economy to its longest growth streak since 2006.

“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,” said a spokeswoman at Toshiba Corp.

For Nintendo, the company has said it hopes to make as many as 20 million Switch units by the end of its financial year, in March 2018. Thanks to supply constraints, the actual sales target of the year is 10 million units, although "strong demand suggests it can sell many more - if it can make them." In its first month on the market, Nintendo sold 2.74 million Switch units.

Analysts watching the supply chain said that Nintendo's rivals "offer better terms" than the video game company, and that smartphone makers like Apple specifically "issue larger orders than Nintendo." This leads to manufacturers giving preference to companies other than Nintendo, and subsequent shortages for its products. Increased spending to secure more parts at a faster rate for the Switch isn't a possibility for Nintendo, as president Tatsumi Kimishima doesn't want the console's $299 retail price to increase.

Top Rated Comments

keysofanxiety Avatar
67 months ago
Wow, imagine reading this in the mid '90s. An "Apple Computer phone", at least 650,000 manufactured on a daily basis, is constraining Nintendo's production for their current console.

Literally unthinkable back then. Crazy how times change.
Score: 12 Votes (Like | Disagree)
NT1440 Avatar
67 months ago
Let's stop with the nonsense. I got major pushback a couple of years ago here when I said that world NAND supplies were well outstripped by demand. Yes Apple is a major contributor to the shortage, but this is one of those "let's pull apple into the headline for clicks" stories.
Score: 6 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
67 months ago
The article says that demand for flash memory from EVERYONE is causing the issue. Not just Apple. But if you throw Apple in the headline you get 1000x more clicks, especially if there's controversy.
Score: 4 Votes (Like | Disagree)
NT1440 Avatar
67 months ago
How much is supply constraint, and how much of it is douche bags buying them up and trying to resell them for profit?

Same goes for the nes classic and amiibo.
I guarantee you that douche bags aren't buying up NAND modules and reselling them. :rolleyes:
Score: 2 Votes (Like | Disagree)
macfacts Avatar
67 months ago
The iphone a more powerful device than the switch. Nintendo needs to focus on games for the app store and android
Never going to happen. Nintendo doesn't want to give up 30%
Score: 2 Votes (Like | Disagree)
Chrome262 Avatar
67 months ago
Let's stop with the nonsense. I got major pushback a couple of years ago here when I said that world NAND supplies were well outstripped by demand. Yes Apple is a major contributor to the shortage, but this is one of those "let's pull apple into the headline for clicks" stories.
I agree, even the article says that phone developers offer better deals and larger orders, seems like Nintendo, once again, planned poorly
Score: 1 Votes (Like | Disagree)

Popular Stories

airpods pro 2 1

AirPods Pro 2 No Longer Expected to Feature Built-In Heart Rate or Body Temperature Sensor

Sunday July 3, 2022 8:07 pm PDT by
While past rumors have indicated the upcoming second-generation AirPods Pro will feature a built-in heart rate and body temperature sensor, Bloomberg's Mark Gurman has cast doubt on those rumors turning out to be true, saying instead such a feature is unlikely to come anytime soon. "Over the past few months, there have been rumors about this year's model gaining the ability to determine a...
top stories 2jul2022

Top Stories: M2 MacBook Air Release Date, New HomePod Rumor, and More

Saturday July 2, 2022 6:00 am PDT by
The M2 MacBook Pro has started making its way into customers' hands and we're learning more about how it performs in a variety of situations, but all eyes are really on the upcoming M2 MacBook Air which has seen a complete redesign and should be arriving in a couple of weeks. Other top stories this week included a host of product rumors including additional M2 and even M3 Macs, an updated...
Apple Watch 8 Unreleased Feature Thumb

Apple Watch Series 8 Model Rumored to Feature 5% Larger Display

Monday July 4, 2022 5:50 am PDT by
Apple is working on an Apple Watch Series 8 model with a larger display, according to DSCC's Ross Young and Haitong International Securities's Jeff Pu. In October last year, Young suggested that the Apple Watch Series 8 could come in three display sizes. Now, responding to a query about the rumor on Twitter, Young claims that the additional display size joining the Apple Watch lineup will be ...
intel go pc justin long

Windows Laptop Makers 'Worried' About New MacBook Air Impacting Sales

Tuesday July 5, 2022 6:57 am PDT by
The upcoming launch of Apple's redesigned MacBook Air with the M2 chip has some Windows laptop manufacturers "worried" that sales of Intel-based laptops will be negatively affected, according to industry sources cited by DigiTimes. "A Wintel brand vendor pointed out that at a price point of US$1,000-$1,500, the MacBook Air will crowd out other high-end notebooks," the report claims, with...
Apple Watch Series 8 What We Know Feature

Apple Watch Series 8 Might Be Able to Tell If You Have a Fever

Sunday July 3, 2022 6:36 am PDT by
The upcoming Apple Watch Series 8 will be able to tell a wearer if it believes they have a fever due to a higher than normal body temperature thanks to a new built-in sensor, according to Bloomberg's reliable Mark Gurman. Writing in the latest edition of his Power On newsletter, Gurman says that the Apple Watch Series 8 will feature a new body temperature sensor, given that the sensor passes ...
macbook air m2

Exclusive: Apple Plans to Launch MacBook Air With M2 Chip on July 15

Wednesday June 29, 2022 5:23 pm PDT by
The redesigned MacBook Air with the all-new M2 Apple silicon chip will be available for customers starting Friday, July 15, MacRumors has learned from a retail source. The new MacBook Air was announced and previewed during WWDC earlier this month, with Apple stating availability will begin in July. The MacBook Air features a redesigned body that is thinner and lighter than the previous...
European Commisssion

EU Approves Landmark Legislation to Regulate Apple and Other Big Tech Firms

Tuesday July 5, 2022 5:53 am PDT by
European Union lawmakers have approved landmark legislation to heavily regulate Apple, Google, Meta, and other big tech firms. The Digital Markets Act (DMA) and Digital Services Act (DSA) were proposed by the European Commission in December 2020. Now, collected in a "Digital Services Package," the legislation has been formally adopted by the European Parliament and seeks to address...