Nintendo Switch is such a smash hit in the gaming tech space that whenever retailers let out the products, stocks go zero all the time. Just recently, a new report has outlined why this is the case despite Nintendo doubling its production.
Apple has been alleged as the root cause why there is not enough Switch available in the market. According to The Wall Street Journal report, the Cupertino titan wolfed down the essential components for its own products, causing a shortage in supply for Nintendo. The core components include memory chips and liquid-crystal displays. Apparently, Apple's iPhone 7 production and future smartphone releases hugely contributed to the problem. The sources of the publication also highlighted that Nintendo is just one of the few who has been affected by the shortage.
The success of the Switch has not been predicted by Kyoto firm as its overall demands exceeded the expected sales. As of April, more than 2.7 million units of the Switch have been shipped worldwide, way step ahead of the 2 million forecast. This figure is expected to soar high in the following months as new games will be introduced.
Retailers run out of stock. Nevertheless, Nintendo vowed to double its production in the next financial year—from 8 million to 16 million units. GameStop doubts that this would suffice the scarcity as it may run until 2018. GameStop COO Toy Bartel previously said, "There's tremendous demand for [the Switch] and we just don't know how high it is because every time we get it out in our store it's literally".
Nintendo's new console is hugely lauded for its convenience and functionality. It lets users play games on TV and can be disconnected from the dock to experience mobile gaming which is the main selling point.
Tech analysts suggest that Nintendo has the option to spend more on the production of the parts, and in return, raise the base price of the Switch from the current US$299 tag. However, the firm is not willing to do such.
