Counting the costs: How chip shortages are affecting telecom companies
The ongoing global chip shortage is affecting industries ranging from automobiles to video games. And the telecom industry has not been left out.
“I’m a little skittish,” AT&T CEO John Stankey said of the shortages. “I mean, we’re seeing dynamics that are occurring in the global supply chain where unexpected things are popping up. And it is possible that we could see certain element shortages that start to crop up as everybody is racing to put stuff up on [cell] towers in May. And that’s why I want to be a little bit cautious.”
Other executives though said they have not yet seen any effects at all.
“We’re seeing no supply issues and we’re forecasting no supply issues on either network gear or smartphones,” said T-Mobile CEO Mike Sievert.
Meanwhile, vendors are fighting to make sure they have the supplies they need to continue to meet demand.
“There were shortages of supply and we obviously chased it, and you just basically put more money on the table and you get the necessary products you need,” said Viavi CEO Oleg Khaykin, according to a Seeking Alpha transcript of his comments. “We were able to meet all our customer demands and not miss any of our deliveries.”
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