Stock Groups

Chip shortage hurts Apple, Nokia, Daimler and Volvo


Apple CEO Tim Cook

Brooks Kraft/Apple Inc/Handout via Reuters

The world’s largest automotive and tech firms are being forced to reduce their target numbers by a lack of chips and basic materials.

AppleTim Cook, the CEO, warned that the company wasn’t immune to supply chain issues. Noting that iPad had faced “very substantial supply constraints” the previous quarter. 

Luca Maestri is the chief financial officer of iPhone maker Apple. He stated that many obstacles need to be faced in the current quarter. This includes supply issues related to Covid-19. hurt sales by between $4 billion and $8 billion. Apple shares fell about 3.7% Friday following its earnings report.

Semiconductors allow for a wide range of technologies to be used to accomplish tasks previously impossible. Semiconductors are found in many things, from kettles and toasters to fighter jets. NintendoYou can also switch consoles.

Elsewhere, NokiaPekka, the CEO of Finnish Telecom Company (Finland), told Julianna Tatelbaum by CNBC Thursday that the company would have experienced a faster growth rate in its last quarter if not for problems with supply chains.

“The situation is stable, but it’s still quite tight,” he stated.

When we think about semiconductors we see improvements everywhere. This is very supplier specific at the moment, but if we take a look at both the first and second halves of the year we are hopeful that things will improve towards the end.

The chip crunch continues to affect automotive companies which use lower-end chips.

In 2021, the global chip shortage caused havoc in the automotive industry as many car manufacturers struggled to locate the silicon needed to drive features like cruise control or parking sensors.

Daimler CEO Ola Källenius told CNBC’s Annette Weisbach Friday that ongoing supply shortages, particularly with regards to semiconductors, are one of the three main challenges in the current business environment.

Källenius added that the new Covid lockdowns in China, one of Daimler’s biggest markets, could affect supply chains around the world.

Lundmark stated that China’s lockdowns are creating uncertainty in the short term, referring to Nokia’s supply chain for chips.

Volvo CarsCNBC’s SquawkBoxEurope’s Jim Rowan, CEO of Volvo, stated that Volvo currently doesn’t have enough of one particular chipet.

The issue will affect the company in the quarter to come, but he said that they have “secured supply” which should be able to help them in the second half.

Berenberg economists Kallum Picering and Salomon Fidedler stated that the Euro zone’s production is still behind the orders in a recent research note.

Although chip sales are recovering, significant price rises suggest that the real rebound will likely be lower than what was suggested.

It will take some time to catch up on the order backlog. They stated that companies will have to work overtime while they catch up with the backlog of orders.