The COVID-19 pandemic and the associated global chip shortage implying of a financial downturn for many tech products manufactures, reducing mass production of smart phones, PCs and other gadgets, Tech giant, Apple is among those feeling the brunt.
The tech firm appears to be suffering fatalities that have significantly affected its supply chain for its iPhone 13 lineup, with news hub, Bloomberg revealing that Apple had asked component manufacturers to pause production, with the demand of its profit magnet lessening as the world welcomes the holiday season.
It would be recalled that Bloomberg in October this year reported that the iOS maker has minimized its iPhone lineup by a staggering 10 million, reaching approximately 80 million units, with the change primarily driven by the crises global overtake.
With the tech titan informing its suppliers of the possibility of not being able to deliver orders, the company is hoping the 2021 production will be revived next year.
Apple has also made public its plans to cut down production of IPad pending when the crisis reforms itself but some suppliers have withdrawn from their agreement with the company regarding the latest generation, as they grew impatient with the absence of retail stock.
It is not only Apple that is suffering from the heavy repercussions from the global chip shortage, other companies from various industries have also been troubled by it, with the scarcity crunch hitting harder on upcoming brands.
IBM President, Jim Whitehurst had in May in a Press Conference expressed fear that this shortage could go on for another two years, and if that fear is to be taken into cognizance, it means tech companies will have to endure longer.
We last month reported that Ford, and General Motors (GM) as a result of the chip shortage worldwide had their sales dropping exponentially, with Ford’s net income of $1.83 billion falling to 23 percent from that of a year ago, while General Motors profit dropped 40 percent to $2.4 billion.
Automakers have for instance encountered difficult challenges reconfiguring their electric vehicles (EV), with many missing significant parts, and the prolonged crisis taking a different shift for these companies implies it will have to force them to consider production tactics to adapt.
But analysts and tech experts are of the opinion that Apple will maintain its rise in sales, with expectations to reach an augmentation of six 5 percent in 2021’s last quarter, giving that the Cupertino-based company is so structured as to overcome the latest challenge of chips shortage.