Apple escapes chip supply crisis, but other manufacturers may have to wait

Apple’s triumph over a global chip shortage in the supply chain signaled good news amid troubled markets around the world.

The company, which had warned three months ago that supply problems would hurt its revenue in the fourth quarter of last year, on Thursday reported record results driven largely by its cellphones.

“Most of the supply constraint issues are gone for Apple, but not necessarily for all other manufacturers,” said Bob O’Donnell, chief analyst at TECHnalysis Research.

Semiconductor companies tend to prioritize larger companies like Apple because of their enormous purchasing power, high demand for their products, and the company’s ability to custom order components used in its products.

Still, while Apple has better service for higher-end chips, like many others, the company has had problems with some of the older technology chips, said Lou Miscioscia, an analyst at Daiwa Capital Markets.

The chips used in iPads, which have seen sales drop 14%, use older technology chips and supplies for those processors are scarcer, Apple Chief Executive Tim Cook told analysts.

Cook said restrictions on older chips were very significant in the last quarter of last year. “Overall, we see an improvement in supply constraints in the quarter ending in March compared to the December quarter,” he said.

Analysts and market leaders in the semiconductor area were hopeful that the supply problems would be eased later this year.

“This will continue to be a concern for the industry, but Apple could be the exception to the rule,” said Romeo Alvarez, technology analyst at William O’Neil.