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More About Apple Struggling with Chip Shortages

More About Apple Struggling with Chip Shortages

 

If you don’t know about the global chip shortage, then you must be living under a rock. But don’t worry, we’re here to enlighten you on the situation. This shortage has affected tons of tech companies throughout the world. This doesn’t only affect cell phones either. Not having these chips affects cars, graphic cards, and even gaming consoles. Some cell phone companies are forced to offer limited launches based on this shortage. 

 

What is ‘a chip’ and what does that mean? Well, the chips that are needed to identify these wildly mass-produced products have been cut back demand wise. This all correlates to the traumatic global pandemic known as Covid-19. With the anticipation of sales dropping, companies slowed production of said technological chips. Which was a premature assumption that ended up backfiring. This shortage started with the sales of vehicles, and slowly has become wide spread across all platforms of technology. Since the pandemic hit the need for at-home entertainment went into full force. This is also a big factor in the major chip shortage worldwide. 

 

Another thing to take into consideration is that these major technological companies don’t manufacture their own processors. Which means that they rely on these other companies like Samsung and TSMC for the chips that they need. 

 

This chip shortage has even reached the bigger phone companies such as Apple. There was a report that stated Apple’s iPhone 13 series would be pushed back. They projected 10 million units to experience chip shortages. 

 

If you didn’t know, the chipsets that Apple designs are created in-house. Their production is carried out by TSMC, but has been impacted due to the major chip shortage. There is a small intel that suggests Texas Instruments and Broadcom are the ones to blame for this slow production. These companies are involved with display parts and wireless components. 

 

Since Apple is the top dog of the cell phone industry, they will get the first pick of the chips that come in stock. Which leaves the underdog companies to scramble. If Apple does get this first pick buying power, the alternative cell phone companies will be behind in sales for the rest of the quarter.

 

The well-known company, Samsung, who is also Apple’s competitor has reportedly also taken a hit by the major chip shortage. There are reports of the chief at Samsung who has secured a connection to chips that is outsourced. We are still unsure of this company's name. Supposedly their requested bid for chips was denied by the respected company. However, they may still be able to get the upper hand when it comes to securing chips for their devices. 

 

Have you heard of this phenomenon before? There are many people across the world that are being affected by this shortage. People are unable to get new cars because they’re missing the chips and VIN numbers. Gaming consoles aren’t issued with their unique chip numbers and are not allowed to be sold. This is taking a toll on the whole technology industry as a whole.  

      

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