Apple averts supply chain crisis, but others not so fortunate

Apple’s stunning triumph over the global chips supply chain shortage has signaled good news amid troubled markets around the world. But, while the supply chain challenges are ebbing for Apple, that’s not necessarily the case for the rest of the world.

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The iPhone maker, which had warned three months ago that supply issues would dent its holiday-quarter revenue, on Thursday posted record results largely boosted by sales of its premium phones. It sees an improving situation, if some remaining shortages.

“Most of the supply-constrained issues are over for Apple, but not necessarily for everybody else,” said Bob O’Donnell, chief analyst at TECHnalysis Research.

Companies from electric automaker Tesla Inc. to wafer fabrication equipment supplier Lam Research have warned again that supply chain issues, which crippled several industries, would continue to limit production this year.

Semiconductor companies tend to give priority to bigger players such as Apple, for its massive buying power, huge demand for its products, and the company’s ability to place custom orders for components used in its products. And Apple’s high-end chips are costly, an attraction for the chip makers.

This essentially means Apple has an advantage and can procure components relatively faster than rivals.

MacDailyNews Take: Unmatched pricing power atop a mountain of cash has its advantages.

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