There has been a lot of talk around the US trade war with China and its impact on the mobile market, but there has been less discussion surrounding how it is going to impact other areas of tech. Today, we are starting to see how other companies are planning to deal with it, as Nintendo has begun moving Switch production outside of China to avoid trade issues.
According to Nintendo supply chain sources speaking with The Wall Street Journal, Nintendo has begun moving Switch production to Southeast Asia in order to produce stock for the US without being hit by trade penalties.
Interestingly, the sources cited say that production on the current Switch model has begun in Southeast Asia, in addition to two new Switch versions. Nintendo has repeatedly denied reports that another Switch version is coming out but sources are being very persistent.
Right now, the belief is that we will be seeing a cheaper Switch model first and then later on, there will be a more powerful version.
KitGuru Says: Nintendo wants to avoid potential price hikes on the Switch to offset increased US-China tariffs, so this move makes sense. Nintendo likely won’t be the only company making this move, others are sure to follow if these issues continue.