Apple in big ‘chip’ crisis; Help must come from China!

Apple Park, First Published Apr 3, 2022, 12:43 PM IST

That’s itAccording to a new report from Apple, the world’s largest mobile phone maker is facing a severe chip shortage. The company reported 9% growth in iPhone sales in the first quarter of the new Apple 2022 report. But sales of other products have hit the company hard, the report said.

But it is clear that the global political health crisis has affected Apple. TechCrunch says that in the early days of the Covid epidemic, there was growing criticism that Apple had no plans for how to overcome uncertainties. But in light of all this, Apple’s iPhone SE is the latest move by Apple.

But Nikki Asia reports that Apple is cutting production of the budget iPhone SE by 20%. Although market observers have speculated that Apple’s iPhone SE may fall short of its earlier targets in the wake of the Ukraine invasion and inflation, the new revelation comes as a shock. If that happened then Apple would lose 2-3 million handsets a quarter.

Earlier this month, Apple announced that it would suspend sales in Russia following the Russian occupation of Ukraine. Apple’s move comes in the wake of the U.S. embargo.

Several major companies, including Apple’s main rival Samsung, have stopped selling in Russia. Apple and Samsung were two of the top five leading smartphone sellers in the Russian market. Therefore, Apple estimates that the repercussions will be general.

The TechCrunch report says that the global chip shortage is still hitting Apple hard. Inflation problems have affected the chip problem. Inflation As the price of phones rises. As the cost of living increases, so does the user’s need to pick up a new phone. This may lead to a drop in sales.

In addition to reducing SE production, Apple reports that orders for airpods will be reduced by more than 10 million by 2022.

Leading suppliers of chips to Apple are Micron Technology, Samsung Electronics and Kioxia Holdings. The biggest setback for Apple was the loss of a batch sent by Kioxia. The company may rely on Samsung and SK Hynix to fix this. However, the company is now trying to find new companies to ensure that they get the memory chip they need at all times without interruption.

For this, Apple is currently testing Nand Memory, manufactured by Yangtze Memory Technologies, based in Hubei, China. The company operates under the Tsinghua Unigroup, which is run with the blessing of the Chinese government. According to the report, Apple has not yet made a final decision on whether to use the chip.

There is also the possibility of considering the Yangtze company chip for the manufacture of devices such as the iPhone SE and the initial iPad. Foxconn and Pegatron are the two leading manufacturers of iPhones for Apple. Most of the Apple devices are manufactured at these plants in China.

These manufacturing plants can easily get cheap memory chips from the Yangtze company. About 5 percent of Yangtze’s memory will be used to build the iPhone SE and about 3-5 percent to build the iPhone 14. This will allow them to sell their phones a little cheaper. And the crisis can be overcome.

Last Updated Apr 3, 2022, 12:43 PM IST


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