Media Tech Intelligence Briefing: Global Chip Shortage

Media Tech Intelligence Briefing: Global Chip Shortage

Media Tech Intelligence Briefing: Global Chip Shortage

Thu 10, 06 2021

In Q1 2021, factors such as increasing demand for consumer electronics contributed to causing a global shortage in the supply of components. This is part of a megatrend seeing COVID-19 producing distortions in the dynamics of supply and demand in different markets, which, according to analysts, may ultimately lead to inflationary pressures. In the case of consumer electronics, the move to remote working and the concurrent disruptions in global supply chains caused by COVID-19 may have produced an imbalance between demand and supply. Other areas such as labor markets are experiencing a similar trend – i.e., demand outstripping supply – due to factors such as unprecedented fiscal spending by governments. IABM conducted a poll on component shortages in April 2021 to measure the impact of this megatrend on the media technology industry. The poll’s findings show that this is a serious issue for most media technology suppliers, and it is a global problem. Anecdotal research carried out by IABM highlighted that this is not a temporary situation but rather a structural shock that may have prolonged effects. PC manufacturers such as Dell, HP, and Lenovo highlighted this situation in their recent investor calls, pointing to record demand for consumer electronics as the main driver for this and warning about price increases as well as shipping delays due to component shortages.

View the interactive report below or click here to access the PDF version.

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