Gadgets get costlier – Japan disaster to blame


At a time when disaster hit Japan is making every possible effort towards rehabilitation and normalcy, the out of control factors are making the situation stiffer and that is not just for the internal operations in the country but also for the socio-economic side outside the region.

Much in demand globally, the electronic gadgets, especially smart phones and cameras have gone expensive as most of the component delivering vendors have taken a toll out of the recent earthquake and tsunami. Though the players are doing their bit not to let the sales go down however they have little options but to go for price hike to make up for the losses.

“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 per cent and 20 per cent 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 per cent of the videogames, 40 per cent of the video cameras and still cameras and 15 per cent 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.