A continuing shortage of chips and other essential materials has forced some of the world’s biggest auto and technology companies to cut their targets this year.
Apple CEO Tim Cook Chip supply issues warned Thursday that the company is “not immune” to supply chain challenges. For example, the iPad business experienced a “very significant supply shortage” last quarter.
iPhone CEO Luca Maestri said several challenges to overcome in the current quarter. Including Covid-19-related supply restrictions, which could drop sales by $4 billion to $8 billion. Apple shares fell around 3.7% on Friday following the earnings report.
Semiconductors are an integral part of technology, enabling more and more products to perform tasks they might not otherwise be able to do. They can be found in everything from toasters and kettles to fighter jets and Nintendo Switch consoles.
Elsewhere, Nokia Sensitive CEO Lundmark told news Juliana Tatelbaum on Thursday that Finnish telecoms would have grown faster in the last quarter were it not for supply chain issues.
“The situation is stable but still quite tense,” he said.
“When we talk about semiconductors, we see improvements here and there. It’s very supplier-specific, but looking at the year and second half. We still expect things to look better by the last of the year. Automakers, which tend to use less sophisticated chips, continue to feel the effects of continuing chip damage.
A global chip shortage wreaked havoc on the auto industry in 2021. As many struggled to find the silicon pieces they needed for functions like cruise control and parking sensors.
ON FRIDAY, Daimler CEO Ola Kelenius told news Annette Weisbach that ongoing supply shortages. Particularly for semiconductors, are one of the top three challenges in today’s business environment.
Källenius added that the new Covid lockdown in China, one of Daimler’s biggest markets, could affect supply chains worldwide.
The blockade in China contributes to near-term uncertainty, Lundmark said of Nokia’s chip supply chain. On Thursday, Volvo Cars CEO Jim Rowan told news Squawk Box Europe that Volvo is currently missing certain chipsets. He added that the company would be affected by the problems in the second quarter but said the company “has secured itself.”