Apple Supplier Foxconn Expects Shipments to Be Impacted by Global Chip Shortage

[macsareveryinteresting]

iPhone 13 won’t be that great anyway

You don’t know that. They always add a better CPU on every iPhone.

 

[mnsportsgeek]

I don’t believe any of this “shortage” claims from any company.

Tell that to all the automotive plants that are shut down because of it.

 

[B_mark_R]

I need that ip13 now!

 

[DeepIn2U]

Apple supplier Foxconn today said that it expects shipments to be cut by 10 percent due to the global chip shortage, reports Nikkei. In an earnings call, Foxconn chairman Young Liu said that the first two months of the quarter were okay, but the company "started to see changes happening this month."

Foxconn did not mention Apple specifically, but it is a major Apple supplier and this perhaps suggests that the ongoing chip shortage will ultimately impact Apple. Foxconn is responsible for much of the assembly of Apple's iPhone models, but it does work with other companies like Google and Microsoft.

Apple has more resources than many other smaller companies that have already been hit by chip shortages, but it could run into trouble sourcing supplies for upcoming devices as the chip issues continue. Foxconn expects the shortage to extend into the second quarter of 2022.

Foxconn will ship 10 percent fewer products than planned, but "the impact on the orders that were secured a long time ago is rather limited," so it's not clear if and when Apple might be affected.

The ongoing chip shortage was caused by supply chain issues that arose during the global health crisis and weather-related events like the freeze in Texas that shut down Austin chip plants. As chip factories struggled to keep up with standard outputs during the pandemic, demand surged as people purchased devices for an at-home lifestyle, leading to higher prices. Electronics companies bought up all available supply, and chip makers are running at capacity.

With manufacturing capabilities limited, chip makers have focused on higher-end chips for smartphones and game consoles rather than the more affordable, less-advanced and less profitable chips used for everyday devices such as cars.

Because of this focus on higher-end manufacturing, the car industry has been most heavily impacted so far, and manufacturers like General Motors and Ford have had to slash production, but major tech companies could also be affected going forward.

Article Link: Apple Supplier Foxconn Expects Shipments to Be Impacted by Global Chip Shortage

I'll bet lack of sales will be blamed on the iPhone 12 mini as well.

Sheesh

 

[0924487]

I thought Apple has had first dibs on TSMC leading node fabs. Can they not just use those fabs to manufacture anything that their supply chain needs to be not impacted? Something does not add up here.

The issue is not the main chip for Apple. It’s the smaller chips like power management controllers etc.

 

[cuencap]

Just another fear mongering article from Nikkei. Not surprised.

 

[WLSON]

Tell that to all the automotive plants that are shut down because of it.

That's because they cut their orders as a reaction to the pandemic, chip suppliers must have allocated that production capacity to some other customer.

 

[Tech198]

First a pandemic, and now this ..... Bill gates was right.

 

[mnsportsgeek]

That's because they cut their orders as a reaction to the pandemic, chip suppliers must have allocated that production capacity to some other customer.

Demand has exceeded supply. Chip makers are at max capacity and still can't meet demand. Your reply doesn't back your stance that a shortage doesn't exist.