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Foxconn says global chip shortage to continue into second half of 2022

By Cookie Monster - on 13 Nov 2021, 10:46am

Foxconn says global chip shortage to continue into second half of 2022

Image source: Reuters

Foxconn expects the global chip shortage to last longer than it initially predicted.

The Wall Street Journal (WSJ) reports that Foxconn says the chip shortage will drag into the second half of 2022 which will affect many companies' abilities to keep up with consumer demand. As the biggest manufacturer of the Apple iPhones, Foxconn added that the October-December consumer electronics revenue to drop year-over-year.

Apple CEO Tim Cook and CFO Luca Maestri have confirmed in July that supply constraints are likely to affect the iPhone and iPad in Q4. Bloomberg says Apple is likely to reduce the iPhone 13 orders by 10 million units for the rest of the year with iPad production being lowered to provide more parts of the iPhone 13. DigiTimes claims that the iPhone 13 supply is unlikely to catch up to demand until February 2022, which will impact the delivery of iPhone 13 to customers.

Counterpoint Research estimates that the 2021 phone shipments will be affected significantly by the chip shortage as a revised forecast indicates a decline of 3%. Canalys also painted a gloomy picture of the global phone market by sharing that the global phone shipments fell 6% in Q3.

Other companies such as D-Link, Linksys, ASUSNintendo and Sony are also struggling to manufacture enough devices for the holiday season. However, GoPro says it has successfully partnered with suppliers to provide sufficient inventory to support its Q4 revenue expectations. Consumers should be prepared to pay higher prices for phones, tablets and PCs next year according to Nikkei Asia as chipmakers marked up their production costs.

Source: WSJ via MacRumours

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