Disaster In Japan Affecting Parts For Smartphones

14 Apr

(Photo source: telecoms.com)

Industry experts have predicted that smartphone sales could fall up to 5% later in the year from the Japanese earthquake. Supplies for technology devices have been greatly impacted by the tragedy and several companies are facing shortages including Nokia and Sony Ericsson.

Companies such as Samsung, Apple and HTC reacted quickly increasing their supplies from China. Quick reflexes from these companies could give them an advantage in the upcoming months when other smartphone companies are coming up short for parts.

The chemical polyvinylidene needed for lithium-ion batteries, which are most often used in devices such as mobile phones, laptops and tablets is provided by Kuraha Corp 70% of the time. The Japanese company was forced to close temporarily due to the earthquake.

Market analysts were expecting sales to increase by almost 11% during the first quarter. However, with the disaster affecting smartphone production they have reduced that calculation to 9%.

Sony Ericsson’s situation may be grimmer with a greater dependence on Japan for parts. The company has also focused a large part of their inventory on smartphones adding to their concerns for the future.

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