Samsung's yearly sales figures are getting a nice boost from a source some may not expect, thanks to a shortage in the supply of NAND flash storage from the companies a certain Cupertino-based device maker would ordinarily use. Apple's iPhones maintain a certain degree of relevance despite the constant influx of Android handsets across various price ranges and the popularity of the latest in the iPhone family has left supply short by as much as 30 percent. That has reportedly forced the company to turn to rivals, such as Samsung, as a way to keep production moving forward. While the situation may not be ideal for Apple, it is bound to be a boon for Samsung.
This turn of events comes at a time when the iPhone manufacturer has finally been supplanted as the top earning company in the world with regards to operating profits. The ironic twist here is that Samsung is actually the company that managed to surpass Apple. The fact that Samsung recently ramped up production of its own 64-layer NAND chips almost certainly plays a heavy role in the decision, as well as the stability of the company's overall production quality and rates. Perhaps even more paradoxically, a sizeable portion of Samsung's increased profits is actually derived from the sale and licensing of its chip-based technologies – including its NAND division.
Supply of the chips in question, as well as other technological components, has been somewhat squeezed due to rapid increases in demand for various smart devices and other advances. So, it isn't at all surprising that even a prominent company like Apple would be experiencing some shortages too. The problem has been ongoing for nearly the duration of the smartphone explosion and is really only expected to get worse as more countries open up larger markets for the handsets. In fact, shortages are expected to continue throughout at least 2017. While it may that could only have a negative impact on the industry, it should also spur even further technological advances and competition as manufacturers search for more ways to work around the problem. In the meantime, manufacturers will need to look elsewhere, including at competing companies, to keep their device availability high and their brands relevant.