How Apple is Navigating the Great Semiconductor Shortage

Apple is faring better than most as the global semiconductor shortage continues. Reuters analyzed why it is in a better position than other firms, particularly automakers, and also explained why it could face some problems in the near future.

Apple, which is famous for its supply chain management and has more buying power than any other company, has avoided problems so far in meeting surging demand in part by burning through supply buffers, Chief Executive Tim Cook told investors on a conference call Wednesday. Problems procuring chips made with older-generation technologies will catch up with Apple in the current quarter, Cook said, noting that other industries also use such chips. He did not cite automakers specifically, but many of their components are based on such earlier-generation tech. Apple expects the problems to mostly affect iPads and Macs – two product lines that have sold well as work-from-home tools during the pandemic but whose sales are a fraction of Apple’s cash cow, the iPhone. Ford, by contrast, is facing production shutdowns for its most profitable product, the F-150 pickup.

Check It Out: How Apple is Navigating the Great Semiconductor Shortage

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