Shortage of chips and supply strongly affects technology giants

Two US technology giants, Amazon and Apple, on October 28 announced business profits for the third quarter, showing that the economy still faces many challenges in the context of supply chain disruptions and disruptions. There is a global shortage of semiconductor chips.

Chip shortages and supply hit the economy hard. Illustration: Bloomberg
Chip shortages and supply hit the economy hard. Illustration: Bloomberg

Previously, when many countries imposed blockade measures to prevent the COVID-19 epidemic, forcing many people to "bury their feet" at home, sales of Amazon and Apple both skyrocketed, but the shortage of electronic chips and high labor costs are "shadowing" the business activities of both.

According to Amazon's report, profit in the third quarter fell to $3.2 billion, due to the impact of the COVID-19 pandemic, labor shortages and product prices pushed up prices. The world's leading e-commerce group said revenue had increased to 110.8 billion USD, but profit was only about 50% of net profit compared to the same period last year.

Meanwhile, Apple also announced a strong third-quarter revenue, but still lower than analysts' forecasts. Specifically, the revenue of "Miss Apple" in the last quarter reached 83.4 billion USD, of which net income reached 20.5 billion USD.

Apple CEO Tim Cook said chip shortages and supply disruptions, along with production disruptions due to the COVID-19 pandemic spreading in Southeast Asia, have affected business.

Google Tech News

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