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The Upcoming Raw Materials Shortage
Over the last couple of months the mobile parts industry has been on a slow recovery back to normality following the initial upset caused by the pandemic. In the last week we have become aware of a situation that will delay recovery for a little longer, and we wanted to keep you in the loop.
Pressure from the Coronavirus, and recent political decisions between the U.S and China, have had a significant impact on the capabilities of IC manufacturers. This scarcity of raw materials has driven up production costs for assembly factories which has resulted in higher purchase prices for wholesalers such as Mobio. We are working closely with our factory partners to ensure that any increases in cost are kept to an absolute minimum, but this unique situation means that a slight rise is unavoidable.
This situation has also been slightly worsened by the recent Covid-19 outbreak in Hong Kong. Many Chinese companies involved in the manufacturing and distribution of spare parts operate partially out of Hong Kong, and the recent lock-down has had a noticeable impact on their infrastructure.
At this time we are expecting prices to be inflated for 1-3 months. Where possible we will be taking on board additional cost internally, and will only be passing on the extra cost where it's absolutely necessary. Hopefully this will minimise any disruption to our customers and ensure you can carry on trading effectively during this difficult time.
As more information becomes available we will be posting further updates.
Thank you for your continued support!