Prices of Technology Items Could Increase Due to Japan’s Disaster

Tablets, smart phones, televisions, cameras, and video devices, gadgets that technology offers us to make our lives easier, could become more expensive due to the low production of Japanese components resulting from the earthquake and tsunami that sook Japan on March 11th.

“From semiconductors to screens, through car’s electronics and mass products, the effects of the earthquake continue to spread in the world,” said the expert Dale Ford, vice president of IHS office, recalling that the “Japanese industrial base has been damaged.”

Between 15 and 20% of global electronics production is Japanese, “Japan holds key positions in certain areas that would damage the industry and everything that depends on it,” analyst Jean-Philippe Dauvin says, from the Décision cabinet.

According to Dauvin, 30% of video games, 40% of camcorders and cameras, and 15% of the TVs sold worldwide are manufactured in Japan.The production of Apple’s iPads and iPhones, which are mostly assembled in China, would also be affected since these devices operate with Japanese high-tech components.

“The new products that drive the growth will be particularly affected. In a smart phone, there are about 100 euros in semiconductors. And forcibly there are memories and Japanese components,” Dauvin says.

The expert expects “shortages, delays in product output, a lengthening of delivery times of products, and the stop of certain productions.” “In three weeks, the supply lines will begin to get empty,” he predicted.

Source: El Comercio Newspaper