New reports reveal that orders placed by Android device manufacturers in China have significantly slowed down. Analysts said that the main reason for this decline is the massive pileup of microchip inventories following the initial boom in high volume sales.

Inside sources in major supply chains said that microchip orders skyrocketed after the Lunar Year break, according to DigiTimes. Despite the massive orders, many local Chinese smartphone manufacturers reported a somehow weak sales output for some of their products, resulting in the decision to cut down the import of microchips.

Like Us on Facebook

According to TechFirstPost, another factor that might have affected the microchip demand in the looming release of the Apple iPhone 7. Many Chinese smartphone manufacturers are reportedly slowing down their production output claiming that they do not want to clash with the upcoming flagship device from Cupertino. The iPhone 7 is expected to be launched in September.

Despite the slow down of microchip demands, Qualcomm recently launched its new Snapdragon 821 chipset. The new chipset is the successor to its widely popular processor, the Snapdragon 820. Qualcomm claims that the new processor will be 10 percent faster than its predecessor.

During the launch, Qualcomm reiterated that the new Snapdragon 821 is not intended to replace its predecessor. The company said in a blog post, "Rather than replace the Snapdragon 820, the 821 is designed to complement and extend the competitive strengths of our Snapdragon 800 lineup."

Qualcomm did not reveal which upcoming devices will be powered by its new chipset. However, the company confirmed that the Snapdragon 821 processor would be at the heart of some commercial devices which will be released in the second half of the year.

Tagsmicrochips, Chip, China microchip, chip demand, microchip demand, Android chips, China microchip demand