As Supply Chain Woes Plague Apple, When's the Best Time to Buy?
The supply chain, still smarting from a global pandemic and labor shortage, threatens to derail some holiday cheer this year. Apple's (NASDAQ: AAPL) Oct. 28 earnings report delivered the harsh reality that the company is struggling to get the internal chips and necessary components for top new products. With electronics supplies low going into Q4, it seems the Grinch has his eyes on Christmas at Apple this holiday season. But a bumpy sleigh-ride for Apple this winter could mean cost-averaging opportunities for savvy, long-term investors.
This year has already seen fallout from continual supply chain crises arising from the COVID-19 pandemic, and further trouble owing to the Suez Canal blockage in March. Those cascading events put a real pinch on companies that source materials worldwide, and which manufacture in China or other areas where labor costs are low.
Major semiconductor manufacturers rely heavily on raw materials from distant shores, and in its most recent earnings call, Apple addressed how the chip shortage combined with supply chain disruptions to affect the company's previous quarter. CEO Tim Cook bet heavily on Apple's reliance on Foxconn and other manufacturers' ability to get necessary materials from around the world. But shipping delays and COVID-19 woes kept Apple's key suppliers from delivering necessary components, including casings, cameras, and critical internal chips and plastics.
Source Fool.com
