When it comes to earnings reports, Apple and Amazon usually beat the Wall Street estimates. But this was not the case during the latest quarter. One of the main reasons: the escalating costs of the global supply chain.
In the case of Apple, the company reported a $6 billion revenue shortfall because of the delays with its iPhone and other products. And for Amazon, it spent an additional $2 billion to handle the challenges. Unfortunately, both companies indicated that the supply chain issues will continue into the all-important holiday quarter. And, of course, there are many other companies facing a similar predicament. In fact, companies like Hershey and Kimberly-Clark have slowed their advertising expenditures because they cannot adequately fulfill orders.
How did the global economy get to this point? What can be done? Perhaps technologies like artificial intelligence can help?
How the Economy has Impacted the Supply Chain
The Commerce Department’s latest report of the U.S. GDP (Gross Domestic Product) was a major disappointment. The annual growth rate came to 2%, while the consensus estimate was 2.8%. By comparison, in the prior quarter the GDP came in at 6.7%. According to the report, the deceleration in the growth was due primarily to disruptions and lower supply.
Continue reading: https://www.itbusinessedge.com/business-intelligence/putting-the-ai-in-inflation/
In the case of Apple, the company reported a $6 billion revenue shortfall because of the delays with its iPhone and other products. And for Amazon, it spent an additional $2 billion to handle the challenges. Unfortunately, both companies indicated that the supply chain issues will continue into the all-important holiday quarter. And, of course, there are many other companies facing a similar predicament. In fact, companies like Hershey and Kimberly-Clark have slowed their advertising expenditures because they cannot adequately fulfill orders.
How did the global economy get to this point? What can be done? Perhaps technologies like artificial intelligence can help?
How the Economy has Impacted the Supply Chain
The Commerce Department’s latest report of the U.S. GDP (Gross Domestic Product) was a major disappointment. The annual growth rate came to 2%, while the consensus estimate was 2.8%. By comparison, in the prior quarter the GDP came in at 6.7%. According to the report, the deceleration in the growth was due primarily to disruptions and lower supply.
Continue reading: https://www.itbusinessedge.com/business-intelligence/putting-the-ai-in-inflation/
