The demand for the Nintendo Switch has been overwhelming , and supply cant keep up to speed , Nintendo has tried many measures even using Airplanes to resume supply.
Nintendo has recently made plans to up its production of 10 million by the end of this financial year in the March of 2018 by 100% i.e. reaching 20 million. In order to go ahead with this sales plan, Nintendo is pushing the Switch forward very aggressively. However, as per The Wall Street Journal, Nintendo face an unlikely competitor for these parts in the form of Apple , and this might in turn again affect supplies. Apple uses more or less the same hardware components that are used in the Switch as well as popular smartphones.
These are mainly components such as the NAND flash-memory in order to store data, LCDs, and tiny motors which are vital to the HD Rumble feature of the Switch, they are all in-demand from Nintendo, Apple and different firms in China. While speaking to a spokeswoman from Toshiba Corp, here’s what she said:
“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.”
She added up that the reason for the supply crunch of the NAND flash memory is that it is required for not just the Switch but also the iPhone 7, as well as the new iPhone which will be releasing in around September. Despite speculating this clash with the world’s biggest smartphone maker being clear to Nintendo, reports say that they are at a better position to bid for the component which the Switch requires as smartphone markers are likely to make a much larger order than Nintendo itself.
It is believed by some analysts that Nintendo may have to increase spending and continue as well if the firm would like to secure equal parts to meet the increased production drive and demand. On the other hand, as per Tech Times, Nintendo Switch has a manufacturing cost of $257 which isn’t less than the retail price of the console i.e. $299.99. As per previous reports, the president of Nintendo, Tatsumi Kimishima is not set on selling the Switch at a loss-leader pricing strategy, and is likely to increase the expenses on the production of the Switch which will reduce profit margin made per console.