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Smartphone Vendors To Face Component Shortage In 2017

Reports say that the global smartphone industry may be staggered by a shortage of components as a result of growing demand from China-based companies.

Sources involved in Taiwanese supply chains told Digitimes that the growing global demand for brands like Huawei and Oppo alongside efforts by those brands to ramp up their market presence may trigger a supply shortage of key components like displays, memory chips and optical sensing units.

They say that Huawei is looking to ramp up its shipments to over 150 million units in 2017 compared to 139 million shipped in 2016.

In previous years, Chinese players often positioned themselves in the mid-to-low segment of the market. However, now these players are making inroads towards the higher end of things in order to raise their average sale price. As a result, the demand for high-end components may well outpace the ability of suppliers to match it.

While bigger players like Apple and Samsung are said to have already consolidated their supply chains, other companies may find their ambitions stifled.

Sources indicated to Digitimes that Apple’s move to secure OLED displays for its next generation of iOS devices may well trigger a shortage for suppliers likely to affect any competitors looking to follow suit.

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