The whole world is now suffering a shortage of chips, at least those industries that depend on advanced semiconductors. Mobile device manufacturers have felt all the negative effects of the shortage more than anyone else.
Samsung is forced to cut the production of the best-selling Galaxy A phones, including the Galaxy A52 and the Galaxy A72. These phones were released in early spring 2021 and have already gained popularity among many consumers. However, due to the lack of chips, the company cannot produce enough phones. In turn, this has led to delays in the release of some models in key markets. While the Galaxy A52 5G is already available in the US, the Galaxy A72 is not.
These new phones feature an 8-nm Qualcomm Snapdragon chipset and therefore have to compete with other Xiaomi and Redmi models that also use this chipset. It is unknown when the situation may get better, which does not work in Samsung's favor at all. Galaxy A phones make up a significant portion of Samsung's annual smartphone sales. How much damage the shortage has caused will be known only when the figures for this quarter are revealed. Moreover, the shortage of chips is one of the main reasons why Samsung will not release the Galaxy Note 21 this year.