Nintendo is competing with smartphone makers such as Apple Inc. over parts needed to build Nintendo Switch consoles, The Wall Street Journal reported May 30, citing industry sources.
The Japanese video game company is said to be looking to make about 20 million Switch consoles in the year ending March 2018. However, the industry is facing capacity shortages for components in digital devices, including the NAND flash memory chips, liquid crystal displays and the tiny motors used in Switch's handheld controllers.
Smartphone makers, such as Apple and other Chinese companies, as well as data centers, contribute to the demand in the NAND flash memory chips, which are used to store data, the report said, citing a Toshiba Corp. spokeswoman.
Analysts said that most often, Nintendo's rivals for the said parts can offer better terms, such as newer and higher-margin components and larger orders.