Samsung is the next Apple

Chip shortage hits Samsung: Apple is spared - the reason

Stephan Wiesend

Problems in the manufacture and delivery of chips cause problems for many manufacturers, Apple has apparently been spared them so far.

EnlargeWith its own chips, Apple is apparently well protected against production downtimes.

The pandemic has had a major impact on the manufacture and supply of chips, which appear to be expanding. The problems of many car manufacturers are known and chips for AMD and Nvidia graphics cards are also rare. Manufacturers of smartphones and other electronic devices are also affected.

Samsung has to postpone the upcoming smartphone

As Bloomberg reports, Samsung is now even considering postponing the presentation of a planned new Galaxy Note. As CEO Koh Don-jin said during a presentation to investors, the next quarter of the business year will be particularly hard hit by the crisis at Samsung. A rather unusual announcement for Samsung, the company is considered very closed to product announcements. Samsung is itself a manufacturer of chips, but is dependent on the preliminary products of other manufacturers. A Samsung factory in Texas was also shut down due to a severe power outage in February.

That's why Apple is not affected by chip shortages

Another reason: the demand for smartphones was higher than expected during the pandemic. Qualcomm's Snapdragon chips, which are manufactured by TSMC, are particularly rare. These are a central component of many smartphones, but there are also said to be a shortage of display ICs for PCs. LCD prices are also expected to rise. Only Apple is not affected by this problem, according to the analyst Ms Hwang of Samsung Securities in the article. The reason is that Apple concludes its supply contracts for a very long time. In addition, Apple is almost the only manufacturer that does not use Qualcomm chips in its iPhones, but its own CPUs.

In general, prices are expected to rise and the shortage will likely continue for another six months. Apple also has its chips manufactured by TSMC, apparently there have been no failures so far.

However, the car industry is still affected by this shortage of chips even more than the smartphone manufacturers, and some of them even had to stop production. It is estimated that automakers will miss out on $ 61 billion in sales this year alone due to the production downtime.