From “Samsung Warns of Severe Chip Crunch While Delaying Key Phone” posted last Wednesday on Bloomberg:
Samsung Electronics Co. warned it’s grappling with the fallout from a “serious imbalance” in semiconductors globally, becoming the largest tech giant to voice concerns about chip shortages spreading beyond the automaking industry.
Samsung, one of the world’s largest makers of chips and consumer electronics, expects the crunch to pose a problem to its business next quarter, co-Chief Executive Officer Koh Dong-jin said during an annual shareholders meeting in Seoul. The company is also considering skipping the introduction of a new Galaxy Note — one of its best-selling models — this year, though Koh said that was geared toward streamlining its lineup…
“The tightened supply of Qualcomm AP chips produced by TSMC is affecting everybody except Apple,” said MS Hwang, analyst at Samsung Securities. “PCs will soon be hit due to the short supply of display driver ICs, and the profitability of TV will be affected by soaring LCD panel prices.”
My take: Three words… Supply chain management.
Even for Apple.
But it’s telling. Very telling.
That Apple is the exception, not the rule.
Buy AAPL.
Wait for it, how long before there’s a congressional committee called together to investigate Apple’s role in the shortage?
The industry publication “Supply Chain Digest,” ranked Apple as one of the worst “greatest supply chain disasters” in history. Steve was determined not to see the same mistake upon his return to Apple. Consequently, Steve reluctantly compromised his desire for tight control over both hardware & software through running Apple’s own manufacturing into efficiency through outsourcing, an anathema to him.
Continue…..
Steve wanted build “just-in-time” factories similar to Michael Dell’s expertise. This is when Steve found Tim Cook. In 1998 when Tim Cook joined Apple the PowerBook production was outsourced to Quanta in Taiwan. Over the next few years Cook accelerated the entire outsourcing process.
Many people persuaded Cook not to leave Compaq & in a commencement address at Auburn Tim even mentioned that there was a well known CEO who told Tim he would be a “fool to leave Compaq.”
Cook had not planned to join Apple. He later said it was Steve’s infamous persuasive ability that instilled enthusiasm to move over to Apple & work with Jobs. So, delivering from manufacturing-to-customer came-of-age and no longer existed warehouses collecting products.
everywhere there is just in time logistics
when this gets disrupted you are in trouble
50 years of automating logistics
all inventory buffers have disappeared
this is nice when the sun is shining
but where you can hide when its raining
takes years to solve this problem