The coronavirus pandemic has resulted in a severe shortage of semiconductors that is affecting nearly all of the industry.
The American corporation Apple plans to cut production of the iPhone 13 in 2021. The company expects 10 million fewer smartphones of this model to go on sale than expected. The reason is interruptions in the semiconductor supply chain due to the coronavirus pandemic. Perild.com tells the details.
The global shortage of microcircuits
Apple has informed its partners in the production of smartphones about the reduction of plans for the release of the iPhone 13, according to Bloomberg, citing sources. According to them, the company due to interruptions in development components Broadcomm and Texas Instruments may reduce production this year from 90 million to 80 million new iPhones.
Broadcomm makes the iPhone’s wireless components, Texas Instruments powers the OLED screen. According to Bloomberg, Apple is experiencing problems with a shortage of components from other suppliers.
Broadcomm and TI rely on the manufacturing facilities of Taiwan’s TSMC. Apple, independently of them, is the largest customer for TSMC chips – its factories, in particular, produce processors for the iPhone and iPad. There is no threat of a shortage of Apple processors, Bloomberg notes.
In a recent (record-breaking financials) quarterly report, CEO Tim Cook warned of potential supply disruptions, reassuring that “Apple will do everything in its power to mitigate any negative impact on the business.”
But it seems that even Apple, with its huge resources and relationships with suppliers, cannot assemble enough components to produce the required amount of iPhone.
Devices are in short supply all over the world and the waiting time is not decreasing – in the American Apple Store, the waiting time for the iPhone 13 Pro Max is about five weeks. Before the start of the last fiscal quarter, Apple’s management announced that it would not receive about four billion dollars due to the problem with the supply of chips.
The shortage of new models is fraught with more than a loss of revenue for Apple. It is known that eight thousand official new iPhone models were brought to Ukraine. Despite the fact that, according to our sources, this amount is enough to start sales, in absolute terms the number of imported devices is very small. If there are no more supplies, a gray market will flourish.
The chip shortage problem began even before the coronavirus pandemic and was later compounded by a number of other factors, including the spread of a more contagious strain of delta, which led to the closure of some factories.
Major microchip manufacturers warn that demand for semiconductor products will outstrip supply for at least a year, and possibly longer.
Why the energy crisis threatens a global economic crisis
Chips are at the heart of most of the things that a person uses on a daily basis – smartphones, televisions and even kettles, which have become smart enough to require microprocessors or at least microcontrollers for their production.
Moreover, most devices require not one chip, but several, which are often produced by different vendors. And the absence of at least one of them leads to a halt in all production.
The automotive industry is also suffering from a shortage of electronic components. The Boston Consulting Group predicts that global car production could decline by nine million units in 2021 due to a shortage of semiconductors.
The global shortage of microcircuits in the auto industry may last until 2023, said Ola Kallenius, general director of the large auto concern Daimler AG (owner of Mercedes-Benz) in September.
“Some chip suppliers cite structural problems with demand. This could affect 2022 and (situation – ed.) May become more relaxed in 2023,” said Ola Kallenius.
Automobiles are becoming more and more dependent on microcircuits as they are used in engine computer control for fuel economy and in driver assistance functions.
The shortage affects not only the quantity of products produced, but also the price. Also, the global shortage of microchips provokes a surge in counterfeit products.