The global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis.
In a dizzying 12-hour stretch, Honda Motor Co. said it will halt production at three plants in Japan for around five to six days next month; BMW AG flagged it will pause production at its plants in Germany and England; and Ford Motor Co. reduced its full-year earnings forecast due to the debilitating chip shortage, which it sees extending into next year. Automakers are expected to lose tens of billions in revenue this year because of the crisis.
Now, the very companies that benefitted from surging demand for phones, laptops and electronics during the pandemic that caused the chip shortage, are starting to feel the pinch. After a blockbuster second quarter, Apple Chief Financial Officer Luca Maestri warned that supply constraints are crimping sales of iPads and Macs, two products that performed especially well during lockdowns. Maestri said this will knock $3 billion to $4 billion off revenue during the fiscal third quarter.
Source: Bloomberg
