Summary List PlacementComputer chips
An ongoing computer chip shortage has impacted everything from cars to iPads to dog-washing technology. Chipmakers like Intel had already seen production issues pre-pandemic, but as with many industries, the pandemic brought a whole range of new supply-chain issues. The chip shortage is a problem for consumers wanting basically anything with a computerized component, which is much of the economy. Take cars as an example.
Automakers have been hit the hardest by the semiconductor shortage. In January, consulting firm Alix Partners estimated the automotive industry would lose $61 billion in revenue from the shortage this year. As Insider’s Katie Canales reported, demand for chips has gone up, as consumers scrambled to buy cars and other technology that utilizes them.
But as more cars went into production, chip competition went up. Since then, many carmakers have been forced to shut down plants and prioritize which models they produce, while car prices at dealerships have only continued to go up.
Last week, Tesla CEO Elon Musk said the semiconductor shortage has caused “insane difficulties” for the electric carmaker. Even Apple — a company that many thought would be able to dodge the shortage after it started making its own high-powered computer chips last year — said it will delay production on its iMac and iPad.
Used cars and rental cars
As USA Today reports, used-car prices are on the rise as the aforementioned chip shortages impact new car production, and buyers have turned to older ones instead.
Buyers are still hoping to get their hands on a new vehicle, creating a competitive used-car market. As Axios reports, used car prices are on the rise, with the average hitting $17,609.
It’s not all bad news for used car lovers, though: As USA Today reports, the …read more