It looks like the semiconductor industry crisis is now seriously threatening the global smartphone market. Recently, the head of Xiaomi said that the shortage of microcircuits will lead to an increase in the cost of production and some of the costs will have to be shifted to the shoulders of buyers, that is, an increase in prices for smartphones is inevitable. And now it became known that due to the shortage, the production of its smartphones can be reduced by Apple.
According to the portal GizmoChina, representatives of Foxconn, a Taiwanese contract manufacturer, said that the supply of mobile devices could be reduced by 10%. And it’s not about weak demand, but about the ongoing shortage of chips. Of course, they did not name the specific models that will suffer the most from the chip shortage, but given that Apple is one of Foxconn’s largest customers, there is no doubt that the crisis will affect iPhone shipments as well.
Foxconn expects the chip shortage to continue into the second quarter of this year. And despite the fact that Apple is in a better position than most of its competitors, if the situation with the shortage of semiconductor products drags on, then the American company risks facing serious problems. However, the management of the contract manufacturer is optimistic (as much as possible, of course) about the outlook for the rest of 2021.
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