Apple just now feeling global chip shortage, while rivals suffer

Posted:
in iPhone
New research claims that while Apple is beginning to feel the impact of the global chip shortage, it is faring better than rivals, and will see substantial market gains as a result of pre-planning.




Early on in the global chip shortage, it was suggested that Apple's scale and buying power could mean it would benefit from better component pricing. Later, Apple was still seen as being relatively unaffected, but more recently it has seen availability issues with vital components, such as for the MacBook Pro.

Now a new report says again that companies such as Samsung are being harder hit. The Information reports on a study by Wave7 Research that found a marked increase in shortages of smartphone inventory in stores.

Some 37 sales representatives at wireless retail stores across the States, were surveyed. Shortages of smartphones in stock were reported by 70% of them for August, up from 45% in June, and 28% in May. No details of a July survey were reported.

Separate research from Canalys showed that Apple's share of global smartphone shipments in the first half of 2021 rose to 62%, compared to 53% for the same period in 2020.

Similarly, Counterpoint Research claims that 5G demand drove Apple to capturing 57% of the $400+ smartphone market in Q2 2021, and nearly 75% of the $800+ market.

Apple has not commented on The Information's report, or Wave7's research. However, both Verizon and Samsung told the publication that there had been problems.

"In a small number of cases, while order fulfillment for some devices may be experiencing temporary delays," a spokesperson for Verizon told The Information, "we are working to mitigate any impact, and order fulfillment should return to normal levels sooner than later."

A Samsung spokesperson said that the firm was "making our best efforts to mitigate" the impact of chip shortages.

Read on AppleInsider

Comments

  • Reply 1 of 8
    Imagine that! Planning ahead gives you a competitive advantage. If only Apple planned ahead for depending too heavily on one communist country for the majority of their components....
    williamlondonwatto_cobra
  • Reply 2 of 8
    JWSCJWSC Posts: 1,033member
    Wave7 Research.  Hmm.  Looks like a one man show out of Kansas City with no real insight or connections trying to steer business it’s way via media propagation.  I guess it’s sort of working since AI picked it up.  But this is not real information nor news.
    williamlondonFileMakerFellerwatto_cobra
  • Reply 3 of 8
    gatorguygatorguy Posts: 23,252member
    Interesting that in China the iPhone 13 lineup is initially being sold for less than Chinese buyers can currently buy a corresponding iPhone 12 model, 300 yuan to 800 yuan cheaper. Why would that be?
  • Reply 4 of 8
    Have to say that Apple's top-tier operations team did a fantastic job
    watto_cobra
  • Reply 5 of 8
    melgrossmelgross Posts: 33,095member
    Imagine that! Planning ahead gives you a competitive advantage. If only Apple planned ahead for depending too heavily on one communist country for the majority of their components....
    Yeah. That country is the USA. According to Cook, Apple bought over $50 billion from USA suppliers in 2019. That consisted of parts and materials. In 2020, it rose to over $60 billion.

    while Apple does buy from Chinese suppliers, it isn’t the majority of what goes into their products. And don’t confuse assembly of products to manufacture of products.
    JWSCtmayp-dogwatto_cobrajony0
  • Reply 6 of 8
    melgrossmelgross Posts: 33,095member
    gatorguy said:
    Interesting that in China the iPhone 13 lineup is initially being sold for less than Chinese buyers can currently buy a corresponding iPhone 12 model, 300 yuan to 800 yuan cheaper. Why would that be?
    Maybe that includes the one year new phone purchase with the rebate from the old phone. We’re seeing the same thing here, where you can get a new 13 Pro Max for $300 on that plan.
    p-dogFileMakerFellerwatto_cobrajony0
  • Reply 7 of 8
    melgross said:
    Imagine that! Planning ahead gives you a competitive advantage. If only Apple planned ahead for depending too heavily on one communist country for the majority of their components....
    Yeah. That country is the USA. According to Cook, Apple bought over $50 billion from USA suppliers in 2019. That consisted of parts and materials. In 2020, it rose to over $60 billion.

    while Apple does buy from Chinese suppliers, it isn’t the majority of what goes into their products. And don’t confuse assembly of products to manufacture of products.
    Who said anything about assembly? What % of the iPhone is made in China? What % was made in China before the Trump trade war?
    williamlondon
  • Reply 8 of 8
    melgrossmelgross Posts: 33,095member
    melgross said:
    Imagine that! Planning ahead gives you a competitive advantage. If only Apple planned ahead for depending too heavily on one communist country for the majority of their components....
    Yeah. That country is the USA. According to Cook, Apple bought over $50 billion from USA suppliers in 2019. That consisted of parts and materials. In 2020, it rose to over $60 billion.

    while Apple does buy from Chinese suppliers, it isn’t the majority of what goes into their products. And don’t confuse assembly of products to manufacture of products.
    Who said anything about assembly? What % of the iPhone is made in China? What % was made in China before the Trump trade war?
    When most people think of manufacture, they are really confusing that a]with assembly. It’s been estimated that the assembly of iPhones adds between $6-9 of value per phone. That’s not much. If most components and materials are bought here, not there, then most of the value of the phones are from here, not there.

    a products sell price is normally between 2.5 to 3.5 of the cost of the parts, which falls in line with expectations. If Apple spend $60 billion in the USA for this last year, and sales were around $230 billion, including software and services, that certainly falls in line with that.

    an example would be the Corning glass Apple uses. Corning makes the sheets, but despite Apple trying to get them to cut it into sizes for Apple’s products, Corning has continued to refuse (that goes for every manufacturer of phones using their glass). So what happens? The glass is shipped to China where a company to cut it was set up by a woman years ago for that purpose. The value equation is that the glass itself is worth about ten times the value of the cutting it.
    watto_cobra
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