With the chip shortage hitting globally, it is common to find companies (or entrepreneurs) giving estimates of how long they think it will persist. Some think that the crisis will only begin to subside from next year; others predict that it will take longer to return to a picture closer to normal. Whatever the case, everyone agrees that the problem will not be solved overnight. That is why the evaluation he has carried out is not surprising Foxconn, the leading iPhone maker.
As published The Wall Street Journal, the Chinese company believes that the current shortage of chips It will be extended at least until the second semester of 2022. This means that Foxconn expects to continue with supply chain problems for several more months; thus, the companies that depend on the Asian firm to produce their devices will continue to suffer delays in meeting the strong demand from buyers. Logically, the problem does not only affect Apple, but it is one of the most notorious cases due to the popularity of the iPhone and the impact it can have on its sales.
That the production of the iPhone 13 suffers from the shortage of chips is not necessarily a new topic. At the beginning of October, this possibility began to be discussed with greater emphasis, while in November we told you that Apple would cut the production of the iPad to have more components for its smartphone.
Apple is coming off a record quarter in which it had revenue over $ 38 billion from iPhone alone. And if Foxconn’s outlook on the shortage of components is accurate, the Cupertino business could be affected in the figures for the next fiscal quarters; beyond the logical push for the launch of the iPhone 13 in the period of October, November and December.
Chip shortage, a headache for Foxconn and Apple
It is clear that the semiconductor crisis does not only hit the production of the iPhone. Delays in international manufacturing and logistics have also been evident in the availability of Macs, the Apple Watch and the iPad. But as we mentioned earlier, Apple’s main source of income is its smartphone, and by wide difference.
Therefore, Foxconn’s estimates of the continuity and possible appeasement of the chip shortage should not be taken lightly. In addition, in the presentation of the latest financial results of Apple there were also markers of certain uncertainty; those of Cupertino recognized a blow of approximately $ 6 billion due to problems in the production line. And with the New Year’s Eve parties just around the corner, there is reason to think that the impact could be even greater.
This does not mean that Apple’s financial health is at risk. But that its main supplier be little optimistic Looking ahead to the months to come it does put more pressure on your device availability and delivery times.