The world is going through a semiconductor shortage, with manufacturers from gadgets to automobiles expressing concerns over the consequences of the chip shortage. Now, Apple supplier Foxconn has announced that the chip shortage may result in delay in upcoming smartphones. According to a report in Nikkei, Foxconn has said that the global chip shortage will reduce its shipments by 10 percent this year. Foxconn chairman Young Liu, in an earnings call, said that the shortage came to notice this month. Liu predicted that Foxconn will ship 10 percent fewer products that it had planned. The company has not detailed as to how long the supply will be affected, but Liu predicted that the shortage may extend to at least the second quarter of next year. This could also mean that this year’s Apple iPhone launch could also be delayed due to the shortage.
Foxconn is one of the key suppliers to Apple. The company is the biggest producer of the Apple iPhone and the recent revelation of the global chip shortage could affect several players in the industry. This snag comes after an already rough year, riddled with the COVID-19 pandemic, which also dwindled the supply chain for major manufacturers and suppliers. It is important to note here that the disruption due to the COVID-19 pandemic also delayed the iPhone 12 launch. Apple usually launches iPhones in September, but the iPhone 12 was launched in October last year.
It is not confirmed that the current shortage of chips could impact or delay the launch timeline for the upcoming iPhone 13 series. If things go according to schedule, the iPhone 13 series (unconfirmed name) will be launched in September this year.
This shortage could also affect Foxconn’s other clients. This is also not a problem exclusive to Foxconn. The semiconductor shortage has affected several tech giants including Samsung, Microsoft, Sony, and more. Even automotive manufacturers have been struggling with the shortage, as there seems to be no immediate solution to the limited availability.