The Tech Shortage
If you have been trying to get some of the latest technology this Christmas, you may have noticed that there is a lack of stock in some of the major retailers. But what is the cause of the tech shortage and when will it be over?
Many of the parts used in electronics are in global constraint which has slowed production down for many large companies. For example, Apple has had to reduce iPhone production by 10 million due to a lack of available parts. The silicon chip shortage is a massive contributor to the recent shortage of technology. The chip shortage started back in early 2020, with the pandemic forcing manufacturers to close. This caused low supplies, while the Pandemic in turn created an increase in demand for portable devices. As countries began to reopen and manufacturing restarted, suppliers have been struggling to keep up with this increased demand. Supplies are expected to return in 2023.
Another reason there is a shortage of electronics is due to bots. Bots monitor all the purchasing sites waiting for them to restock on certain items. Once they are available, bots will immediately buy as many as possible before the items go out of stock again. The people who use these bots will then sell the items to consumers at a higher price. This is happening with both the parts needed and the end products, making it difficult for consumers and manufacturers alike.
What Tech Is in Shortage & When Will They Come Back?
As mentioned above, Apple will be lowering production of new iPhones’ by roughly 10 million. Car manufactures such as Jaguar, Land Rover, the Renault-Nissan-Mitsubishi Alliance, and many others have also seen a decline in their vehicle production. Until the chip shortage is resolved in 2023, industries aren’t expected to get back to their usual production levels.
Supplies of laptops and desktops are still low for the festive period. If you are hoping to make a purchase of laptops or PCs, the tech shortages may affect your chances of purchasing one.
Despite the overall hardware shortages, itQED will always do our best to get you the products you deserve. If you have any products that you’re struggling to find for your business, contact us here and we will try our hardest to make sure we can meet your needs.