iPads And Macs Could Be Next To Suffer Wrath of Semiconductor Crunch : NPR

The new iMac computers that were unveiled on April 20 can be seen in this illustration, which was photographed in La Habra, California. Apple said sales could be impacted as a lack of chips could affect production of iPads and Macs. Jae C. Hong / AP Hide caption

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Jae C. Hong / AP

The new iMac computers that were unveiled on April 20 can be seen in this illustration, which was photographed in La Habra, California. Apple said sales could be impacted as a lack of chips could affect production of iPads and Macs.

Jae C. Hong / AP

Supply chain disruptions take a bite out of Apple, and it can get harder to get your hands on that shiny new tablet or laptop.

Apple warns that it can’t make enough iPads and Macs to keep up with demand due to a global semiconductor shortage that has disrupted production at almost every major automaker from Ford to VW.

Apple’s CFO Luca Maestri said late Wednesday that the lack of supply would hurt sales of these two products and save between $ 3 billion and $ 4 billion in sales over the next three months.

However, Apple expects sales to grow in the current quarter. The announcement came in a call for profits just a week after the company launched new iPads and computers.

Car production disrupted by chip shortage: a dream car may be difficult to find

A semiconductor shortage has hampered the world’s largest automakers for months, forcing them to cut production and even shut down entire plants because of missing essential parts.

Computer chip manufacturing requires significant lead time as much of the global supply comes from a handful of companies. And during the pandemic, the demand for electronics like laptops and tablets has increased as so much life went online.

“Mac’s last three quarters were the best three quarters in the history of the product,” Apple CFO Luca Maestri told investors Wednesday, noting that demand was driven by a large number of people working from home work and learn.

Meanwhile, new car sales recovered much faster than expected. The simultaneous surge in demand – for electronics and vehicles – quickly outpaced what semiconductor companies could deliver.

Other plants at GM go dark as the lack of chips continues to bite

The automakers felt the shock first and the pain continues. BMW temporarily stops production in a mini-plant, making it one of the global automakers who have been successful on the assembly line. Elon Musk, Tesla CEO, said the past few months have included “some of the most difficult supply chain challenges we have ever faced in the life of Tesla.”

Ford forecast their production will be reduced by more than a million vehicles this year due to chip restrictions, meaning profits will drop by about $ 2.5 billion.

Perhaps counterintuitively, Ford had a very strong financial quarter. The semiconductor dilemma has caused the global supply of new vehicles to decline, which has predictably propelled the price of vehicles up. That means the company makes more money with every vehicle it produces.

Apple reported that its profits doubled to a record $ 23.6 billion in the first three months of the year, thanks to its flagship products – iPhones and Macs – which, of course, are full of chips.

That’s a silver lining for automakers, but a red flag for consumers, as these persistent supply bottlenecks could drive prices for goods like cars and electronics higher.

Taiwan is trying to fix the shortage of car chips, but there is no end in sight, economics minister says

The Biden government has emphasized the importance of investing in domestic supply chains to avoid these types of bottlenecks.

Companies in Taiwan – the world’s dominant supplier of computer chips – are increasing production and are ready to relocate some of the scarce supplies to the auto industry, Taiwan’s Minister of Economic Affairs Wang Mei-hua said NPR. However, she warned that it would be some time before the new chips hit automakers.

Tech executives and automakers are trying to figure out how long this crisis will last and how best to manage it.

“The semiconductor shortage and manufacturing impact will get worse before they get better,” said CEO Jim Farley.

Nokia CEO said Bloomberg The chip shortage could drag on for a year or two.

Tim Cook, Apple’s CEO, told investors to predict when the supply crisis would be over, “We need to know the true demand of each of these players and how that is going to change over the next few months. It is very difficult for you to give a good answer. “

“We’ll do our best,” said Cook. “I can tell you that.”

Jack

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