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Qualcomm: Snapdragon Chip Shortage Likely

Mobile & TelcoNews
by Darren Allan, 21 Apr 2012News

Qualcomm isn't making enough Snapdragon chips to satisfy the demands of the smartphone market, and the firm has warned of an impending shortage in one of its lines.

The S4 Snapdragon 28nm chip is the processor which third-party manufacturers can't make enough of and Qualcomm has warned there may be supply issues until the end of the year.

In other words, Android and Windows Phone handset manufacturers may not be able to get the technology they wanted on board their smartphones

So what's happened here, exactly? In a conference call, the company's chief operating officer, Steve Mollenkopf, confirmed that Qualcomm had underestimated demand for the S4 Snapdragon.

The company is hoping to plug the gaps with alternative products from its range, but acknowledges that rivals may benefit from this chip shortfall.

Mollenkopf said: "In any constrained environment, people look for any alternative they can in order to solve the problem. We've been helping customers to see how they can swap in our Fusion 2 chipset... [but] we do expect to see some alternative non-Qualcomm chipsets used to solve that issue as well."

Qualcomm's loss may turn out to be Nvidia's gain - and there could be some delay going forward in terms of smartphone shipments, as manufacturers rejig products.

Source: BBC

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