Chip supply issues are still giving some of world’s biggest companies a major headache

An ongoing shortage of chips and other basic materials is forcing some of the world's biggest tech and automotive companies to scale back their targets this year.

Tim Cook warned that the company was not immune to supply chain challenges, noting that the iPad business had significant supply constraints during the most recent quarter.

Luca Maestri, the CFO of the company, said there are several challenges that need to be overcome in the current quarter, including supply constraints related to Covid-19 that could hurt sales by between $4 billion and $8 billion. Friday was the day after Apple's earnings report.

Semiconductors are an essential piece of technology that allow a growing range of products to perform tasks they otherwise wouldn't be able to. They are in everything from kettles to fighter jets.

In other news, Pekka Lundmark told CNBC that the Finns would have grown faster in the last quarter had it not been for supply chain issues.

The situation has been stabilizing but it is still tight, he said.

We are seeing improvements when we talk about Semiconductors. We are hopeful that things will start looking better towards the end of the year, despite the fact that it is quite supplier-specific at the moment.

The impact of the ongoing chip crunch continues to be felt by automotive companies.

The global chip shortage wreaked havoc on the car industry in 2021, as many of them struggled to find the pieces of Silicon they need to power features such as cruise control and parking sensors.

There are three main challenges in the current business environment, and supply shortages are one of them, according to the CEO of Daimler.

One of Daimler's biggest markets, China, could be affected by the new Covid lockdowns.

Lundmark said in reference to the chip supply chain that the China lockdowns are adding to short-term uncertainty.

Volvo doesn't currently have enough of one particular chip, according to Volvo Cars CEO Jim Rowan.

The company will be affected by the issue in the second quarter, but he said the company has secured supply that will help it in the second half of the year.

The production of cars still lags far behind orders, according to a research note by Kallum Pickering and Salomon Fiedler.

Significant price increases meant the rebound in real terms was likely to be less than the sales value suggested.

It will take time to catch up with the orders. They said in the note that companies will need to work overtime.