Malaysia’s Philippines capacity can’t keep up with analysts’ forecast selling of NS in second half

Nintendo has just set a “small target” for 19 million NS sales in last week’s earnings report, and President Juntaro Kogawa said the impact of the virus outbreak on production is expected to disappear in the summer. Unfortunately, the anti-epidemic situation in Malaysia and the Philippines, which are important parts of The NS, has not improved significantly, and the government has both imposed new blockade sending orders.

Malaysia's Philippines capacity can't keep up with analysts' forecast selling of NS in second half

Malaysia is primarily responsible for Switch circuit boards, while the Philippines is the main source of passive devices. Both components are now a short board for the entire production chain of the Nintendo NS. Nintendo also has to compete with handset makers for limited DRAM, which could also have an impact on production in the second half of the year.

Malaysia, which had eased its blockade on May 4, was delayed by the lack of preparation of most businesses and social groups. The Philippines, for its part, is considering gradually reducing some of the blockade measures from May 15, and the overall resumption of production is not sufficient for the entire second half of the supply demand.

Malaysia's Philippines capacity can't keep up with analysts' forecast selling of NS in second half

Hideki Ysuda, an analyst at Ace Research Institute, warned in an interview with Bloomberg: “We’re likely to see Switch out of stock again at the end of the year, because Nintendo can’t prepare enough inventory for the coming shopping season.” “