Phone producers have not been hit as hard as automobile manufacturers when it comes to the global chip shortage
Reuters says that companies like Ford get much of the blame for their faulty analysis. Several manufacturers cut back chip orders a year ago when the pandemic started to raise its ugly head, but failed to forecast the stronger than expected rebound that ensued. Ford CEO Jim Farley acknowledged that the chip shortages and production cuts could last into next year and warned investors and buyers that “there are more whitewater moments ahead.”
Advanced Micro Devices (AMD), in order to get around a shortage in the material used as the foundation in the production of integrated circuits, found that it can avoid a shortage by investing in the companies that supply it with this material. This resulted in AMD being able to obtain the amount of material it needs. CEO Lisa Su says, “We’re a bigger part of our suppliers’ businesses, and we’re looking for opportunities to help our partners get the capacity that we need in place. We started that last year, and we’re going to continue.”
While Apple faces potential shortages in delivering iPad models later this year, the iPhone contributes six times the revenue that the iPad does. Ford, on the other hand, is facing big time production shutdowns for its most profitable product, the F-150 pickup.