A chip shortage has already seen ripple effects as fewer smartphones have been shipped around the world in the third quarter this year, The Straits Times reported, citing data from Canalys.
There were 325.5 million units shipped, which is a 6% drop from 348 million a year ago, according to the report. A global shortage of semiconductors is to blame due to a wider demand for electronics because people have been stuck at home for much of the last two years, along with the closures of factories amid the pandemic.
The chip shortage has curbed production of televisions, computers and cars, the report stated. It could last through next year.
Samsung was the biggest vendor in Q3 2021, having shipped 69.4 million units — a 21% chunk of the total shipments during the period, according to the report. Apple was in second place and shipped 49.2 million units, while Xiaomi, a Chinese smartphone maker, shipped 44 million.
The chip shortage has cut Apple’s revenue by around $6 billion in the company’s fiscal fourth quarter, and CEO Tim Cook said it has affected “most of our products,” the report stated. Both Apple and Samsung had already warned in the past of the shortage’s possible effect on shipments.
Phonemakers have been trying to stave off those effects, though, by stocking up on chips, according to the report. So, the phone market might have been shielded, at least somewhat, through the component supply crunch.
However, there’s “no end in sight” for the shortage, which is causing longer wait times and hoarding.
Read more: No End in Sight for Global Chip Shortage
The semiconductor industry is worth $464 billion, and the crisis has hit vehicle manufacturers, home appliance makers, medical equipment, smoking devices and electronics.
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