Japan earthquake to hit electronics prices?

Japan earthquake to hit electronics prices?Obviously the main tragedy of the recent Japanese earthquake and tsunami is a human one, and our thoughts go out to anyone directly involved or affected by the disaster.

But it looks like there could be an even wider fallout from the quake, as market research firm iSuppli says electronics components could be in significantly short supply as a result, leading to dramatic price increases.

While for the most part actual damage to electronic production facilities seems to be minimal, iSuppli suggests the disaster's impact on the transportation and power infrastructure could lead to supply disruptions, which will drive prices upwards.

Affected components manufactured in Japan could include flash memory, DRAM, microcontrollers, LCD panels and LCD parts and materials, with the firm pointing out the very real risk that global supply will be slowed or suspended altogether for the next two weeks – which is about the amount of excess component inventory available to take up the slack.

Any longer, and we could see costs passed down the line, with the shortages and their potential impact on prices set to linger until the third quarter, iSuppli warns.

Fortunately, most of Japan's major component makers are located well south of where the recent quake and the resultant tsunami hit the hardest, so have largely avoided serious damage.

Via DigiTimes

Add a comment
3 comments

rpkeu8701r  Mar. 15, 2011 at 11:35

Any old excuse to put the price up i personally find it insulting

williamyzfr1  Mar. 15, 2011 at 11:40

and there was I thinking that all those parts/components were manufactured in China these days. Perhaps many are but noone seems to miss an opportunity to raise prices

JanSt / MOD  Mar. 15, 2011 at 12:54

Well, even if parts are manufactured en masse in China. Japan is still making a lot of the original work. Do you think if an earthquake obliterated RIM's Canadian HQ, production in their Hungarian plants would continue as if nothing happened?
Anyhow, I like it when Business news focus our attention on what matters. Who cares about some whiny victims who wait for a handout, eh? Who cares that a nuclear meltdown is still possible? As long as that new gadget is released on time...

Oops, wrong forum...

In cynical tech speak: the world didn't end when HTC ran out of AMOLED panels... Someone else somewhere else made S-LCD panels.

Email:

You don't need an account to comment. Just enter your email address. We'll keep it private.

Comment: