Apple CEO: Silicon shortages and C-19 lockdowns to hurt sales by up to $8 billion

Apple is warning that lockdowns of factories in Shanghai due to COVID-19 and industry-wide silicon shortages will hurt its sales by between $4 billion to $8 billion in the next quarter. On an earnings call, CEO Tim Cook said the "constraints are primarily centered around the Shanghai corridor" but "on a positive front, almost …

[Jay 2]

Interesting. I ordered a Mac Studio on 9th April and was told ETA would be 24th May. Fair enough as it's a new product plus there are all the component shortages. A while later I checked the tracking and it then said 4th May. So I thought I still had loads of time to pick up new keyboard/mouse and 4k screens. Then last Friday on the 22nd I get a text/email to say that it had arrived and I could pick it up. Cue lots of frantic online purchasing so I could play with my new toy last weekend.

[Anonymous Coward]

I'm curious. If Apple sources it's silicon from China then why isn't it banned?

[ThomH]

Because silicon fro China isn't banned?

[Anonymous Coward]

is it? A certain manufacturer springs to mind.

[DS999]

Because Apple doesn't

TSMC is the company that fabs Apple designed SoCs. They are in Taiwan, not mainland China.

[Anonymous Coward]

Re: Because Apple doesn't

and where do you exactly think Shanghai is from the article itself? Have they moved it to Taiwan? Did I miss that memo? The company is called Pegatron and whilst they are a Taiwanese company they operate in Shanghai.

https://www.theguardian.com/world/2022/apr/13/iphone-maker-pegatron-halts-shanghai-production-due-to-covid-lockdown

I guess ignorance is bliss.

[Dave 126]

Re: Because Apple doesn't

A few years ago a full list of all Apple suppliers was released as part of a court case... It's a long list of companies from all over the world.

(The company that left me scratching my head was Shimano, that many of you will know from mountain bike components and fishing reels - apparently they made pins that went into the old school Apple Magsafe connector. )

[DS999]

Re: Because Apple doesn't

Yes most (but not all) iPhones are assembled in China, but that's not what you said. You claimed they were "sourcing their silicon" from China, I corrected you so now you are saying you claimed something else.

[sanmigueelbeer]

If Apple sources it's silicon from China then why isn't it banned?

Because it is Apple and Apple has "a lot of friends".

Remember, there is one rule for the Americans and another rule for everyone else.

[sanmigueelbeer]

Apple is warning that lockdowns of factories in Shanghai due to COVID-19 and industry-wide silicon shortages will hurt its sales by between $4 billion to $8 billion in the next quarter

So why not "ramp up" the production in other factories, like the one in Austin, Texas?

(Maybe the Austin factory is only there for tax break purposes?)

[DS999]

Because that plant only made Mac Pros, and producing other stuff there requires a bunch of new production lines and all the parts shipped there instead of where they make them now. Not exactly something that you can turn on a dime, it would take a couple years to make a change like that - and won't help with shortages of certain parts which is the main issue, not the Shanghai closures.

Besides, it isn't like Texas is invulnerable. A little cold weather shuts down the whole state!