Will Apple feel a vacation pinch from semiconductor shortages?


SEmiconductor shortages are currently impacting most technology industries. But will the pinch hurt Apple (NASDAQ: AAPL) during the holidays and beyond?

In this “Beat & Raise” video on Motley Fool Live, recorded on October 6, Demitri Kalogeropoulos, contributor to Fool.com, explains why the iPhone maker could be less affected than its peers by these shortages. Crazy contributor Brian Withers is also in this clip.

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Brian Withers: Demitri, do you want to answer any of the Apple questions we had?

Demitri Kalogeropoulos: Sure. A quick response that I have for [inaudible 03:53:08] Did you say do you think Apple will be affected this quarter or in future earnings periods by the semiconductor shortage? They now have their own M3 chip, but they are dependent on other M3 semiconductor manufacturers.

I don’t know much about it, their agreements with other companies. I will say management has yet to give any indication that they are feeling the pinch here.

I will also say that Apple, because it’s so big, usually these guys, if you want to satisfy a customer, it’s basically going to be Apple.

They are the biggest customer of many of these suppliers. Like I said, and a lot of their contracts are built that way, like Apple takes precedence.

This is what its privileged position gives it this unique ability. I think Apple would probably be the least impacted, but that doesn’t mean it wouldn’t be impacted at all.

Brian withers has no position in any of the stocks mentioned. Demitri Kalogeropoulos owns shares of Apple. The Motley Fool owns shares and recommends Apple. The Motley Fool recommends the following options: March 2023 long calls at $ 120 on Apple and March 2023 short calls at $ 130 on Apple. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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