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WSJ: Nintendo Battles Apple for Parts as Switch Demand Rises

ethomaz

Banned
I doubt they are even produced on the same equipment.
You are right in some part but they use the same product line and most equipment are identical.

If you are producing to one device you need to wait until reach all units requested, adjust/change equipment to the next device and start the new one.

Companies will do Apple wants first... that is a no surprise.

That is probably why Nintendo is aiming 10m units for the fiscal year.
 

ethomaz

Banned
Phones and tablets don't have games that can take up more than the 26 GB of internal memory available in the Switch. The fact many phones only have 32GB of flash memory is a shitty excuse for the lack of built in flash memory in the Switch.
I'm not sure what you are implying because most actual iPhone has 32GB base config... and I won't be surprised if the 64GB option uses two 32GB chip instead one 64GB chip due costs.
 

jts

...hate me...
Looks more like a daily "switch is in high demand" thread, to be honest.

Apple is using no screen that overlaps with what Switch is using, yet they somehow "fight" for it.

Apple sells dozens of millions of iphones and about a dozen million ipads PER QUARTER.

Give me a break.
Yeah those damn Nintendo shills at the Wall Street Journal.

/s
 
So even WSJ is doing click bait now?

Apple doesn't "battle" anyone, they get what they want regardless of the other manufacturers needs.
 
Its not good news per se that price of components are likely to increase, but it is definitely great news the Switch is in high demand.

Worse come to worse, you know Nintendo will just jack up Switch price a little, everywhere except for America and probably the UK.
 

Buggy Loop

Member
Looks more like a daily "switch is in high demand" thread, to be honest.

Apple is using no screen that overlaps with what Switch is using, yet they somehow "fight" for it.

Apple sells dozens of millions of iphones and about a dozen million ipads PER QUARTER.

Give me a break.

Same display manufacturer for iphones, Japan display. They also had trouble keeping up demand with Apple before.

Even if you make a different product, the output of the company is not limitless.

Give me a break.
 
The way the article reads, it would seem Nintendo has no concerns about hitting 10 million; it's beyond this that component supply becomes an issue. That's somewhat encouraging, I guess.

So even WSJ is doing click bait now?

Apple doesn't "battle" anyone, they get what they want regardless of the other manufacturers needs.

They said Nintendo is battling Apple. They didn't say Apple gives a fuck.
 
I have been concerned that there was some issue with production, but the way this is worded doesn't make it sound too terrible. It seems they should easily exceed their 10 million unit forecast (at least produce a good amount more) but maybe not meet their ideal production goal (18-20m).

It's interesting this time that Nintendo went for off the shelf parts yet still gets screwed over by production and supply issues. You just can't win in the mobile tech industry unless you're Samsung or Apple...

So even WSJ is doing click bait now?

Apple doesn't "battle" anyone, they get what they want regardless of the other manufacturers needs.

Nintendo is battling Apple, not vice versa. You can have one without the other!
 
This situation isn't unique to Nintendo and it happen every year.

The article seems like just an execuse to lump Nintendo and Apple in the same sentence.

It's primarily an addressing of why the Switch may struggle with supply issues going forward, a highly publicised 'feature' of its current production cycle. Apple happens to be one of the major causes in that, being highlighted as a recognisable name so that people get the point.
 
This situation isn't unique to Nintendo and it happen every year.

The article seems like just an execuse to lump Nintendo and Apple in the same sentence.

If Apple is taking up a lot of the NAND flash memory production then it's a very legitimate point to make.

I don't think Nintendo or their suppliers were ready for the demand to be this high, so the realities involved in increasing production may very well be coming up against these companies' max production capacity such that they can only supply a certain amount for certain clients. Apple is surely a higher priority client so Nintendo will have a battle on its hands to ensure they'll have enough components.
 

Mokujin

Member
So it really seems like Nintendo is trying to push the Supply Chain hard to get as much Switch's out there as possible this year, they really need to try to nail the stock for this fall season.
 
I demand a trial by combat.
amoktime0467.jpg
 

Fiendcode

Member
More and more it's looking like Nintendo's shockingly conservative forecasts are more a byproduct of supply line limitations than market based concerns. Also this is pretty solid confirmation that the 10m projection wasn't already a doubled one like some suggested earlier.

People joked about a Switch TV microconsole or a dedicated Switch Mini dedicated handheld but those sorts of revisions might not be bad ideas if they cut out some of the problematic components (screens, rumble motors, etc). Too soon for 2017 but more hardware variants in 2018 and later should be on the roadmap.
 

Futureman

Member
I would think Apple uses a faster/more expensive flash chip in the iPhone than Nintendo in the Switch. Plus the 720p screen isn't as common anymore.

Did this article just add another 2 million in the FY18 estimate?

Too soon for 2017 but more hardware variants in 2018 and later should be on the roadmap.

2019 at the earliest IMO.
 
Just announce the Switch handheld version without rumble and all those extra stuff later next year. Like a 2DS version of the switch.
 

Aroll

Member
I doubt this includes demand for puny little 32GB NAND flash memory, smartphones are moving past that.

That's typically the smallest and cheapest size. iPhones use that size and it's the most popular iPhone people own due to costs. Besides, it's a fight over supply from the assembly lines. There are only so many assembly lines and apple will get priority over Nintendo for use of those lines because their purchase orders are severely larger.


Phones and tablets don't have games that can take up more than the 26 GB of internal memory available in the Switch. The fact many phones only have 32GB of flash memory is a shitty excuse for the lack of built in flash memory in the Switch.

Do you want a $800 Switch? Look at the pricing of phones when they get 64, 120, 240 gigs of flash memory. Go ahead, I'll give you time to google it.

It's expensive as all heck. On a system that doesn't require that games are installed, it doesn't make sense to include really big, yet really expensive, flash memory. It would drive the price of the Switch out of a range the market can bare. People already complain over $299. You think $599 or higher would sit better just to have a ton of internal storage?

Nintendo created the best of the bother worlds. They used a small amount of internal memory to keep the costs under control at the market and is something that would affect most consumers who go physical only. For those that want to go digital, they gave you an easy way to upgrade your storage with micro sd cards, something many opt to do on android devices getting as much storage as they want. Plus, Nintendo allows multiple cards used on each system. You can buy a Hanful of 120 gig cards on BFsales and be set.

It's the best of both worlds for everyone. If they released a 240 gig flash version.... people wouldn't be able to afford a Switch.
 

ggx2ac

Member
The NES Classic also used NAND correct?

This was most likely the shortage for it that Nintendo explained to investors before.

That's why they couldn't manufacture much, it's not like the Switch where people could buy more software for it that Nintendo would be willing to pay a higher cost for NAND flash.

Now I wonder about the SNES Mini.
 

tkscz

Member
This was most likely the shortage for it that Nintendo explained to investors before.

That's why they couldn't manufacture much, it's not like the Switch where people could buy more software for it that Nintendo would be willing to pay a higher cost for NAND flash.

Now I wonder about the SNES Mini.

Thought as much. Normally I don't shit on the guy, but
being able to tell ol' Jim Sterling he was wrong about why Nintendo stopped making the NES mini and that they were telling the truth when they said they were low on resources feels good.

But I digress. I planned on buying a Switch mid June and hoping that I can find one not being sold on eBay at a ridiculous price hike.
 

Fiendcode

Member
This was most likely the shortage for it that Nintendo explained to investors before.

That's why they couldn't manufacture much, it's not like the Switch where people could buy more software for it that Nintendo would be willing to pay a higher cost for NAND flash.

Now I wonder about the SNES Mini.
Maybe the Switch microconsole should literally be an X1 stuffed in NES and SNES Classic Mini shells? They could probably move those with a controller for $199.
 

Futureman

Member
I doubt that, just look at how 3DS went;

2011: 3DS
2012: 3DS XL
2013: 2DS
2015: n3DS / n3DS XL
2017: n2DS XL

Conversely look how the Wii/Wii U went. I'm guessing it will be a mix of both so revision after 2 years makes sense to me.

Also 3DS had a bad first year and Switch is selling like hotcakes.
 

zelas

Member
That's not a fight they should be starting lol. They really fucked up with their forecasting and planning.
 

ggx2ac

Member
I doubt that, just look at how 3DS went;

2011: 3DS
2012: 3DS XL
2013: 2DS
2015: n3DS / n3DS XL
2017: n2DS XL

The reason that happened was because of the price cut. I'll try to summarise since I don't want to spend too long explaining it again.

3DS was overpriced and overstocked, spooked Nintendo that it was losing sales. Nintendo cuts price drastically.

3DS ships 15 million units in its first calendar year, however software sales didn't make up for the price cut of the hardware.

Nintendo reports first financial loss in decades.

Nintendo releases 3DS XL which costs more for consumers so that Nintendo gets more revenue, producing more units of 3DS XL and 3DS helps to lower manufacturing costs.

2DS was made for Europe and US because of low sales of 3DS handhelds.

Etc etc

You get the idea though, the reason the 3DS XL appeared so soon was that Nintendo needed to offset more losses by making a handheld that would give more revenue hence, the 3DS XL.

The Switch does not have this problem because it is selling well at its price. That is why it's expected that there won't be a revision until at least 2019.
 
I wonder if we will see an increased intenral storage switch model faster because 32gb seems to be the high demand size for smartphones now.

Or if they will reduce it to 16gb and just include a 32gb card in the box. Might be a way to avoid competing for the high demand nand memory without significantly impacting the cost.
 
Whilst they might not reach 20million by the end of the FY that doesn't mean they won't be the 10 million target. It's just a question of how much and when we'll actually see the benefits of the increased supply.
 
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