Samsung has warned its fans not to expect a new Galaxy Note device this year. The company is considering taking this step due to a major semiconductor shortage, which could adversely affect its business through 2021 and beyond.
The semiconductor shortage could make it a “burden” for Samsung to release two new flagship devices this year.
The Galaxy Note Lineup Will Live On
As reported by Bloomberg, at Samsung’s annual shareholders’ meeting in Seoul, the company’s co-CEO DJ Koh said that there is a “serious imbalance” of semiconductors worldwide.
This shortage is expected to significantly impact the company’s business in the second and third quarters. Samsung is working with its partners to solve the shortage, but there’s a lot of work that still needs to be done.
Due to the semiconductor shortage, Samsung is considering not launching a new Galaxy Note device this year. Koh, however, notes that this move is also geared towards Samsung streamlining its Galaxy lineup.
The move does not mean that Samsung is going to kill the Galaxy Note lineup. Koh said that Samsung does intend to launch a new Galaxy Note device next year, though its launch timeline might be different from previous years:
[The] Note series is positioned as a high-end model in our business portfolio. It could be a burden to unveil two flagship models in a year so it might be difficult to release Note model in 2H. The timing of Note model launch can be changed but we seek to release a Note model next year.
The Galaxy Note series has a loyal fan following. When compared to the Galaxy S lineup, it stands out due to S Pen support. However, this year, Samsung added S Pen support to the Galaxy S21 Ultra, making it a viable Galaxy Note alternative for many.
Other Industries Hit by Semiconductor Shortage
Samsung is not the only company that’s has been hit by a semiconductor shortage. All major automakers worldwide have had to slow down production and even been forced to shut down their factories due to the shortage.
The shortage is primarily caused by a spike in demand for consumer products like smartphones, PCs, TVs, and other electronic devices in the COVID-era we’re currently living through.
To make matters worse for the company, Samsung shut down its Austin foundries due to the Texas freeze in February. Restarting the unit is taking longer than expected, which will lead to Samsung losing millions of dollars and also impact the availability of its SSDs.