The effect of chip shortage will last throughout 2021

The past year has seen a serious shortage of chips and other components, which has had an impact on several industries. Smartphones did not suffer as much, but new reports suggest that the problem may be exacerbated.

Experts claim that the impact of chip shortage may worsen, cutting the 2021 smartphone shipment forecasts to 1.41 billion units (compared to previous 1.45 billion). Approximately 90% of smartphone manufacturers have reported a slump in Q2 2021, and even an even bigger one in Q3. In Q2 they were receiving about 80% of requested components, a number that decreased to 70% in Q3.

Apple is less affected than most other companies by the chip shortages. The companies suffering from this shortage include Xiaomi, Samsung and Oppo. The cancelation of Galaxy S21 FE may have occurred due to the chip shortage, among other industry setbacks.