From Snowmobiles to Cellphones, a Scramble for Parts

Companies are reconfiguring products and paying up to stockpile parts, as persistent supply shortages in the electronics industry continued to curb sales in the second quarter.
Shortages of key electronics components such as transistors, capacitors and integrated circuits became pronounced in the first quarter, and continued in the second. Manufacturers haven’t been able to ramp up supply fast enough to meet rebounding demand.

A wide range of companies have seen sales get hit. General Electric Co. (GE) said supply constraints for electronic components used in its healthcare equipment cost the company $50 million in sales for the quarter.
Network-equipment vendor Telefon AB L.M. Ericsson said shortages cost the company $400 million to $550 million in sales and delayed shipments. Royal Philips Electronics NV said shortages constrained sales in its TV and lighting businesses.

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