Apple Supplier Foxconn Warns of Chip Shortage Issues

Foxconn factory

Key Apple supplier Foxconn has warned that the global chip shortage will continue into the first half of 2022, Reuters reported. Indeed, it said on Friday that its fourth-quarter revenue for electronics, including smartphones, will be down by over 15 percent.

Ongoing Chip Shortage Worry For Foxconn And Apple

On a conference call, Foxconn Chairman Liu Young-way said that “if not for supply shortages prospects for the fourth quarter could have been better,” but warned of an ongoing chip shortage. “Regarding next year’s prospects, we will be relatively cautious in our outlook.”

The company previously warned that rising Covid cases in Asia could impact its supply chain. However, it does expect supply shortage issues in Southeast Asia to ease in the final months of this year.

While analysts said that iPhone sales helped boost Foxconn in the third quarter, Apple has previously said that supply chains issues cost it around US$6billion in sales in the third quarter of 2021. It slashed its iPhone production target last month too.

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