Apple facing 3D NAND Storgae Chip Shortages for iPhone 8+, asks Samsung to step in

Apple facing 3D NAND Storgae Chip Shortages for iPhone 8+, asks Samsung to step in

The iPhone 8 is expected to support a lot of significant changes and will be a much more premium variant than the iPhone 7s and iPhone 7s Plus also expected to launch this fall.

Heart of the Matter:

  • All the three smartphones will come with 3D NAND chips for storage that Apple has been using since last year’s iPhone.
  • However, as 3D NAND is still a new technology, Apple’s suppliers have reportedly failed to meet the demand for this year's batch, and the Cupertino giant has had to look to Samsung to make up for the shortfall.

Apple can't afford 3D Nand Storage Chips:

  • With the coming of September, Apple cannot afford to have bottlenecks in its supply chain, especially since it is planning such a mega launch.
  • DigiTimes reports that Apple’s primary suppliers for 3D NAND chips - SK Hynix and Toshiba – have fallen short in supply by as much as 30 percent due to poor yield.
  • Because of this, Apple has had to go to Samsung for making the rest of the 3D NAND chips.
  • Furthermore, Apple is also expected to use 3D NAND chips with 64 layers in the iPhone 8, as compared to last year’s 48 layers.

iPhone 8 Leakes, on the basis of reports:

  • Upcoming iPhones will be made available only in two storage variants – 64GB and 256GB - matching KGI's predictions.
  • The report also indicates that this shortfall in supply of NAND chips is not expected to improve until 2018.
  • To recall, Samsung is also the sole supplier of OLED displays as well for the iPhone 8 this year, but Apple has reportedly invested in LG to ensure that it can look at other suppliers for OLED next year.

OLED Technology in iPhones:

  • Speaking of OLED, Nikkei reports that Apple is expected to launch three iPhones in 2018 as well, and all three of them are expected to come with OLED displays.
  • This means that Apple suppliers will really have to up their game in OLED production, something that Apple has reportedly had difficulty in procuring this year.
  • Apple is said to have signed a deal with Samsung for sole OLED panel supply, but it hopes to rope in companies like Sharp, LG, and others next year to meet the increased demand.

The iPhone 8 is expected to launch with better waterproofing, wireless charging, bezel-less display, and much more.


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