Menu
Japan disasters may ripple in NZ channels

Japan disasters may ripple in NZ channels

Distributors in New Zealand have not felt the impact of the March 11 earthquake, tsunami and nuclear catastrophes on pricing or availability, despite the large number of ITC components manufactured in Japan.

Analysts and observers have widely commented that Japan accounts for significant percentages of global manufacturing for certain components. Pricing was already being affected on commodity markets within days of the disasters, whose death toll in human terms has reached unfathomable levels.

But what impact manufacturing disruption will have on the New Zealand technology market in general will still not be fully realised until at least the end of April or early May, several sources have commented.

“It is early days and clearly most of the ‘food-chain’ will be well-supplied for the moment,” says Renaissance chief marketing officer Warwick Grey. “It is more likely something may happen in a month, six weeks as inventory runs down and it’s time to re-order. Normally that is how long it takes to flush through inventory.”

IDG News Services reported on March 21 that the price of NAND flash memory — the main data storage in iPads, iPhones and other mobile devices — had increased by as much as 20 percent since the earthquake struck. The NAND market reacted strongly because Japan supplies as much as 40 percent of the world’s NAND flash chips, according to Jim Handy , at Objective Analysis.

Chip factories where Toshiba makes NAND flash memory are in Yokkaichi City, Japan, around 500 miles away from the earthquake’s epicentre and the area hit by the tsunami.

“Two [factories] temporarily stopped operations on March 11, but afterward resumed operation and are now operating normally,” Toshiba said. “We are still carefully examining any possible impact on the production equipment caused by the earthquake, but the effect so far is minimal.”

New Zealand country manager for Australia-based distributor Cellnet, Dave Clark, added that as much as 15 percent of the world’s DRAM is manufactured in Japan as well. Cellnet, like other distributors, has not received any dire warnings about supplies from vendor partners, says Clark.

Some vendors say the impact here should be short-lived.

“There will be short-term price volatility due to disruption in DRAM/NAND Flash supply from Japan,” says Teddy Lin, ASEAN and Oceania regional manager for Transcend, a manufacturer of memory upgrades for digital cameras, desktops, notebook PCs, servers, workstations and video games.

“Shortage of chip supply will affect some module manufacturers more than others depending on their procurement model. This is less of a problem for Transcend, as we have strong relationships with Samsung in terms of DRAM and NAND flash chip supplies. Overall this year we [expect to] see a greater surge in demand for NAND flash compared to DRAM due to the continued expansion of smart phone and tablet market, hence a more stable to upward pricing is expected for flash products.”

In addition to its role as a chip manufacturer, Japan is also a centre for hard disk drive manufacturing, with Showa Denko, accounting for 25 percent of global share of the hard disk market, according to Digitimes, an Asian tech industry news and research organisation. Showa Denko shut down two plants in Japan, Digitimes reports, but since it also has production lines in other countries, it can compensate for disruptions.

In addition to this, IDG has reported that several factories have come back online as of March 23.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags JapanEarthquake

Featured

Slideshows

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments