Japan disasters could send gadget prices higher

Disaster-hit Japan churns out many of the world's smartphones, video cameras and other gadgets and while sales are not expected to suffer around the globe, industry analysts expect prices to rise.

"From semiconductors to displays, to automotive and consumer electronics, the effects of the Japan earthquake continue to reverberate throughout the world," said Dale Ford, senior vice president at research firm IHS iSuppli.

"Beyond the damage to Japan's own industrial base, the earthquake has impacted the production of basic electronic raw materials," Ford said.

Japan produces between 15 percent and 20 percent of the world's electronics and "plays a particularly key role in some areas," said Jean-Philippe Dauvin of Paris-based consulting company Decision.

Dauvin said 30 percent of the videogames, 40 percent of the video cameras and still cameras and 15 percent of the television sets sold around the world are manufactured in Japan.

He said 40 to 50 of Japan's 140 semiconductor factories have been shut down as a result of the March 11 earthquake and tsunami and noted that DRAM and NAND memory are key components of both tablet computers and smartphones.

Within the next few weeks, there will be disruptions to the global supply chain and higher prices for computer chips, "leading inevitably to higher prices for the consumer," Dauvin said.

"There's about 100 euros ($141) worth of semiconductors in a smartphone," Dauvin said. "There's sure to be memory and Japanese components in there."

Apple's iPad and iPhone, for example, is assembled mostly in China but is brimming with "Made in Japan" parts according to IHS iSuppli, including the battery, electronic compass, NAND and DRAM memory and the touchscreen display.

"The supply chain will begin to dry up within about three weeks," Dauvin said, leading to shortages, delivery delays and forcing the shutdown of some production lines.

Japan's factories usually work at full capacity from April and May to crank out products for later in the year, including the Christmas holidays.

It remains difficult to predict when the country will resume producing at full capacity because aftershocks are continuing to play havoc with factories and electricity remains rationed in some areas.

Gartner research vice president Richard Gordon said he was cautiously optimistic Japan's disasters would not have too much of a negative impact on the global supply chain for electronics.

"Early on, when the earthquake just happened, there was lot of concern that there would be an immediate impact and that it would be quite significant on the global level in terms of a disruption to the electronics supply chain," he said.

"But over the past two or three weeks we've become a bit more optimistic that disruptions will be contained, that there will be enough flexibility in the supply chain to smooth out some of these disruptions," he said.

"It is still possible in the next months, into April and May, that we may see some shortages that we're not forecasting at the moment," Gordon said.

"But at this stage it's a bit early to say so," he said. "We will wait and see how the supply chain copes."

Voices
A Russian hunter at the Medved bear-hunting lodge in Siberia
Save the tigerWildlife charities turn to those who kill animals to help save them
News
Davis says: 'My career has been about filling a niche - there were fewer short actors and fewer roles – but now I'm being offered all kinds of things'
PeopleWarwick Davis on Ricky Gervais, Harry Potter and his perfect role
News
i100
Sport
Frank Lampard will pass Billy Wright and equal Bobby Charton’s caps tally of 106 caps against
sportFormer Chelsea midfielder in Etihad stopgap before New York contract
PROMOTED VIDEO
Life and Style
ebookA wonderful selection of salads, starters and mains featuring venison, grouse and other game
Life and Style
ebookAn evocation of the conflict through the eyes of those who lived through it
Arts and Entertainment
The first film introduced Daniel Radcliffe to our screens, pictured here as he prepares to board the train to Hogwarts for the first time.
booksHow reading Harry Potter helps children grow up to be gay-friendly
Arts and Entertainment
A scene from Aladdin is performed at the Tony Awards in New York in June
theatreBrit producer Lythgoe makes kids' musical comedy a Los Angeles hit
Sport
Usain Bolt of Jamaica smiles and shakes hands with a competitor after Jamaica won their first heat in the men's 4x100m relay
sport
News
Chancellor George Osborne, along with the Prime Minister, have been 'complacently claiming the economy is now fixed', according to shadow Chancellor Ed Balls
i100... which is awkward, because he is their boss, after all
Life and Style
A small bag of the drug Ecstasy
Health
Life and Style
Floral-print swim shorts, £26, by Topman, topman.com; sunglasses, £215, by Paul Smith, mpaulsmith.co.uk
FashionBag yourself the perfect pair
News
news
News
Netherlands' goalkeeper Tim Krul fails to make a save from Costa Rica's midfielder Celso Borges during a penalty shoot-out in the quarter-final between Netherlands and Costa Rica during the 2014 FIFA World Cup
newsGoalkeepers suffer from 'gambler’s fallacy' during shoot-outs
News
people
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmReview: A week late, Secret Cinema arrives as interactive screening goes Back to the Future
Extras
indybest
News
i100
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    (Senior) IT Support Engineer - 1st-3rd Line Support

    £40000 per annum: Ashdown Group: A successful IT service provider that has bee...

    Recruitment Consultant - Bristol - Computer Futures - £18-25k

    £18000 - £25000 per annum + Commission: SThree: Computer Futures are currently...

    Trainee Recruitment Consultant - Real Staffing - Leeds - £18k+

    £18000 - £27000 per annum + Commission: SThree: Sales - Trainee Recruitment Co...

    Trainee Recruitment Consultant - Manchester - Progressive Rec.

    £18000 - £23000 per annum + Commission: SThree: Progressive Recruitment are cu...

    Day In a Page

    Save the Tiger: Meet the hunters tasked with protecting Russia's rare Amur tiger

    Hunters protect Russia's rare Amur tiger

    In an unusual move, wildlife charities have enlisted those who kill animals to help save them. Oliver Poole travels to Siberia to investigate
    Transfers: How has your club fared in summer sales?

    How has your club fared in summer sales?

    Who have bagged the bargain buys and who have landed the giant turkeys
    Warwick Davis: The British actor on Ricky Gervais, how the Harry Potter set became his office, and why he'd like to play a spy

    'I'm a realist; I know how hard this business is'

    Warwick Davis on Ricky Gervais, Harry Potter and his perfect role
    The best swim shorts for men: Bag yourself the perfect pair and make a splash this summer

    The best swim shorts for men

    Bag yourself the perfect pair and make a splash this summer
    Has Ukip’s Glastonbury branch really been possessed by the devil?

    Has Ukip’s Glastonbury branch really been possessed by the devil?

    Meet the couple blamed for bringing Lucifer into local politics
    Dress the Gaza situation up all you like, but the truth hurts

    Robert Fisk on Gaza conflict

    Dress the situation up all you like, but the truth hurts
    Save the tiger: Tiger, tiger burning less brightly as numbers plummet

    Tiger, tiger burning less brightly

    When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
    5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

    In grandfather's footsteps

    5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
    Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

    Martha Stewart has flying robot

    The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
    Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

    Do women cyclists need 'pootling lanes'?

    Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
    A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

    A tale of two presidents

    George W Bush downs his paintbrush to pen father’s life story
    Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

    The dining car makes a comeback

    Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
    Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

    Gallery rage

    How are institutions tackling the discomfort of overcrowding this summer?
    Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

    Eye on the prize

    Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
    Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

    Women's rugby

    Tamara Taylor adds fuel to the ire in quest to land World Cup