July 28 (Reuters) – The global chip shortage has grounded major automotive factories to a halt but pushed technology giants to become more flexible by diverting existing supplies to their most profitable products, analysts and executives said.

Apple Inc (AAPL.O) said on Tuesday chip shortages had mostly affected its iPad and Mac products in its last quarter, but would start to bite into its mainstay iPhone business, its best seller and major profit driver, in the current quarter.

“We’ll do everything we can to mitigate whatever set of circumstances we’re dealt,” Chief Executive Officer Tim Cook said in a post earnings conference call.

The comments provide an insight into how Apple, known for its deft supply chain management through long-term supply deals with Broadcom Inc (AVGO.O) and Qualcomm Inc (QCOM.O), is dealing with the shortage ahead of the crucial holiday quarter when it sells millions of its new line of flagship phones.

Some analysts believe Apple could be prioritizing chip supplies for its new phones during the July-September quarter, which is typically the sleepiest for iPhone sales as shoppers hold out for upcoming models.

“I think it largely reflects the timing of new product releases, specifically related to new iPhone launches in September,” Angelo Zino, an analyst with research firm CFRA, said of Apple’s warning.

Even in normal times, he said, “new phone cycles typically start off supply constrained given the high demand needs ahead of the holiday selling season.”

And even within Apple’s current lineup, the company is likely to direct the supply chain pain to its least lucrative products, said Jeff Fieldhack, research director at Counterpoint Research.

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