Apple Inc's Massive Demand for Chips and Semiconductors under COVID-19 and its Response Strategies

Research Article
Open access

Apple Inc's Massive Demand for Chips and Semiconductors under COVID-19 and its Response Strategies

Haiyan Zhu 1*
  • 1 University of Western Ontario    
  • *corresponding author hzhu334@uwo.ca
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/9/20230361
AEMPS Vol.9
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-45-4
ISBN (Online): 978-1-915371-46-1

Abstract

COVID-19 has been in the spotlight since the end of 2019. The impact of the spread of the epidemic is not only limited to the inconvenience of people's lives, but also leads to the inability of most companies and related industries to operate and produce normally. Not only can most human resources not be restored to normal in a short period of time, but also the chip supply chain's untimely supply leads to the emergence of chip supply shortages, which also reflects the fragility of the supply chain network. This study focuses on the impact of the global chip supply chain shortage on Apple in recent years and how to address it. The study was conducted by understanding Apple's current business strategy and how it has been adjusted according to the chip market. At the same time, the company's current data analysis of the main products, you can clearly see the current chip shortage problem for Apple's impact. The main problems of the chip industry are in the chip production supply chain, the complexity of chip production, and the lack of raw materials, so the semiconductor can not be normalized production, but the market demand for chips is increasing day by day. To reduce the chip shortage brought about by the loss of profits, Apple needs to further develop its own supply chain to achieve chip supply sustainability.

Keywords:

Apple Inc., COVID-19, chips, semiconductors, manufacturing supply chain

Zhu,H. (2023). Apple Inc's Massive Demand for Chips and Semiconductors under COVID-19 and its Response Strategies. Advances in Economics, Management and Political Sciences,9,377-383.
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References

[1]. Shead, S. (2022, May 2). Chip supply issues are still giving some of world’s biggest companies a major headache. BBC News.

[2]. Microcontroller Division Applications. (n.d.). INTRODUCTION TO SEMICONDUCTOR TECHNOLOGY. N.p.: STMicroelectronics. Retrieved from https://www.st.com/resource/en/application_note/cd00003986-introduction-to semiconductor-technology-stmicroelectronics.pdf.

[3]. Nishi, Y., & Doering, R. (2000). Handbook of Semiconductor Manufacturing Technology (illustrated ed., pp. 23-25). N.p.: CRC Press.

[4]. Tsai, W., Chen, H., & Hsien, W. (2001, November 9). Journal of Loss Prevention in the Process Industries, 15(2002), 65-75. doi:https://www.sciencedirect.com/science/article/pii/S0950423001000675.

[5]. Stadtler, H. (2008). Supply Chain Management — An Overview. In: Stadtler, H., Kilger, C. (eds) Supply Chain Management and Advanced Planning. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-74512-9_2.

[6]. Elliott, Matthew and Golub, Benjamin and Leduc, Mathieu V., Supply Network Formation and Fragility (April 18, 2022). American Economic Review, forthcoming 2022, Available at SSRN: https://ssrn.com/abstract=3525459 or http://dx.doi.org/10.2139/ssrn.3525459.

[7]. IDC. (March 18, 2020). Estimated semiconductor industry revenue growth impacted by coronavirus (COVID-19) and the wider implications for the technology industry worldwide as of March 2020, by scenario [Graph]. In Statista. Retrieved August 16, 2022, from https://www.statista.com/statistics/1105939/covid-19-impact-on semiconductor-and-wider-technology-industries-worldwide/.

[8]. Apple's expenditure on semiconductors from 2011 to 2021 (n.d.). In Statista. Retrieved from https://www.statista.com/statistics/383194/apple-semiconductors-expenditure/.

[9]. Tim Cook warns of Apple product shortages. (2021, April 29). BBC News. Retrieved from https://www.bbc.com/news/technology-56929647.

[10]. Apple Inc. (2021). Apple Inc. Annual Report. Washington, D.C. 20549. 10-K.

Cite this article

Zhu,H. (2023). Apple Inc's Massive Demand for Chips and Semiconductors under COVID-19 and its Response Strategies. Advances in Economics, Management and Political Sciences,9,377-383.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-45-4(Print) / 978-1-915371-46-1(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.9
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Shead, S. (2022, May 2). Chip supply issues are still giving some of world’s biggest companies a major headache. BBC News.

[2]. Microcontroller Division Applications. (n.d.). INTRODUCTION TO SEMICONDUCTOR TECHNOLOGY. N.p.: STMicroelectronics. Retrieved from https://www.st.com/resource/en/application_note/cd00003986-introduction-to semiconductor-technology-stmicroelectronics.pdf.

[3]. Nishi, Y., & Doering, R. (2000). Handbook of Semiconductor Manufacturing Technology (illustrated ed., pp. 23-25). N.p.: CRC Press.

[4]. Tsai, W., Chen, H., & Hsien, W. (2001, November 9). Journal of Loss Prevention in the Process Industries, 15(2002), 65-75. doi:https://www.sciencedirect.com/science/article/pii/S0950423001000675.

[5]. Stadtler, H. (2008). Supply Chain Management — An Overview. In: Stadtler, H., Kilger, C. (eds) Supply Chain Management and Advanced Planning. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-74512-9_2.

[6]. Elliott, Matthew and Golub, Benjamin and Leduc, Mathieu V., Supply Network Formation and Fragility (April 18, 2022). American Economic Review, forthcoming 2022, Available at SSRN: https://ssrn.com/abstract=3525459 or http://dx.doi.org/10.2139/ssrn.3525459.

[7]. IDC. (March 18, 2020). Estimated semiconductor industry revenue growth impacted by coronavirus (COVID-19) and the wider implications for the technology industry worldwide as of March 2020, by scenario [Graph]. In Statista. Retrieved August 16, 2022, from https://www.statista.com/statistics/1105939/covid-19-impact-on semiconductor-and-wider-technology-industries-worldwide/.

[8]. Apple's expenditure on semiconductors from 2011 to 2021 (n.d.). In Statista. Retrieved from https://www.statista.com/statistics/383194/apple-semiconductors-expenditure/.

[9]. Tim Cook warns of Apple product shortages. (2021, April 29). BBC News. Retrieved from https://www.bbc.com/news/technology-56929647.

[10]. Apple Inc. (2021). Apple Inc. Annual Report. Washington, D.C. 20549. 10-K.

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