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
83 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
83 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
83 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
83 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
83 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
83 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

Multi Display CarPlay 1

All-New Apple CarPlay Launching Later This Year With These 5 New Features

Friday September 29, 2023 11:29 am PDT by
At WWDC 2022 last year, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple said the first vehicles with support for the next-generation CarPlay experience would be announced in late 2023, but it has still not shared any additional...
iPhone 15 Pro lineup

Apple to Address iPhone 15 Pro Overheating Issue With iOS 17 Update

Saturday September 30, 2023 9:28 am PDT by
Apple plans to release an iOS 17 update to address a bug that may contribute to the reported iPhone 15 Pro and iPhone 15 Pro Max overheating issue, according to a statement the company shared today with MacRumors and Forbes reporter David Phelan. Apple also says some recent updates to third-party apps have overloaded the system and contributed to the overheating issue. The report notes that...
iphone se 4 modified flag edges

iPhone SE 4 Details: Action Button, USB-C Port, Face ID, and More

Wednesday September 27, 2023 1:34 pm PDT by
Significant changes are expected to arrive with Apple's fourth-generation iPhone SE, in terms of both design and hardware, MacRumors has learned. The iPhone SE 4, known internally under the codename Ghost, is expected to receive a new design derived almost entirely from the base model iPhone 14. According to our sources, the iPhone SE 4 will use a modified version of the iPhone 14 chassis...
BMW Logo iPhone 15 Pro

Warning: BMW Wireless Charging May Break iPhone 15's Apple Pay Chip

Sunday October 1, 2023 6:14 am PDT by
If you have an iPhone 15 and drive a BMW, it might be best to avoid charging the device with the vehicle's wireless charging pad for now. Over the past week, some BMW owners have complained that their iPhone 15's NFC chip no longer works after charging the device with their vehicle's wireless charging pad, according to comments shared on the MacRumors Forums and X, formerly known as Twitter. ...
iPhone 16 Side Feature

iPhone 16 and 16 Pro: Preliminary Weights and Dimensions

Friday September 29, 2023 12:34 pm PDT by
MacRumors has obtained preliminary information on the weights and dimensions planned for the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. The information corroborates previous reports suggesting that the iPhone 16 Pro and 16 Pro Max will feature larger displays. iPhone 16 and 16 Plus Current information suggests that the iPhone 16 and 16 Plus will maintain the same...
CarPlay SharePlay

CarPlay Not Working for Some iPhone 15 Users, Possibly Because of USB-C Cables

Friday September 29, 2023 2:27 pm PDT by
CarPlay is not working as expected for some iPhone 15 users, an issue that is likely linked to the transition to USB-C. There are multiple complaints from MacRumors readers and Reddit users who are unable to get CarPlay to work with their new devices. Cable type and available port options are a common theme in the CarPlay reports, with many of the functionality problems linked to USB-A to...
iPhone 15 USB C Port Keynote

Some USB-C Power Banks Fail to Work With iPhone 15

Thursday September 28, 2023 2:06 pm PDT by
Apple added a USB-C port to the iPhone 15 lineup this year, allowing it to work with USB-C cables, USB-C power banks, and more. It turns out that some USB-C battery packs are not working properly with Apple's iPhone 15, resulting in charging issues. As highlighted on Reddit and the MacRumors forums, not all existing USB-C power banks can be used with the iPhone 15 models, perhaps due to the...