Obviously, disruption within manufacturing plants and factories means that the finalized product is going to take longer to reach the end-user.
Take Dell for example. In order for its stock to hit shelves in Australia, their lead times have had to be extended from their regular three to five weeks to double that, with products now taking up to ten weeks to reach shelves.
This is just one of the major players within the technology market though, so we may be better served by looking at a real-world example of an in-demand product that has suffered from manufacturing issues.
The Nintendo Switch is one of the worlds most popular gaming consoles and has been in demand since it was first released. As mentioned before, Nintendo is one of the many companies who outsource their production to Foxconn, and as such have been hit by the production issues already discussed – Nintendo have actually been very open about this.
Regardless, the classic Nintendo Switch console has been a victim of the manufacturing slowdown – and as a result, is becoming sold out across the board. In more popular seller marketplaces like Amazon private sellers have been able to mark the price of the console up to 40% higher than its RRP thanks to its popularity and lack of stock.
This isn’t just the case in the USA either, in Europe, the UK and across the world, the Nintendo Switch has been the victim of an inflated price thanks to opportunistic third-party sellers.
It’s safe to say that the Nintendo Switch could be a litmus test as to how the rest of the market will be treating commodities such as graphics cards, motherboards, and other PC parts, as they remain highly in demand, bolstered by a potential customer base with a vested interested in indoor hobbies.
Looking at some other statistics as examples, Digitimes recently reported that Mobo and graphics cars shipments in China could hit a record low; solidifying the concerns raised earlier in this article about the production process and overall supply chain being effected by the coronavirus.
Overall, the worldwide PC marketplace is set to be drastically changed from previous years in terms of overall sales and progression. In fact, Canalys has predicted that this year global PC shipments could drop from anywhere between a best case 3.4%, and a worst-case 8.5%