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Component Shortages Showing ‘Early Signs of Easing’: Cisco CEO

Cisco expects to continue to experience supply chain inflation in the short term, “driven primarily by higher component, freight and logistics costs,” said CEO Chuck Robbins on an earnings call Wednesday for fiscal Q4 ended July 30. “We expect this…

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margin pressure to begin to ease” as the new fiscal year progresses, he said. “After a challenging April due to the COVID-related shutdowns in Shanghai, and the impact on semiconductor and power supplies, overall supply constraints began to ease slightly at the back half of the fourth quarter and continuing into the start of Q1.” Though the component supply headwinds remain, “they have begun to show early signs of easing,” he said. “The multiple actions we have taken over the past two years are helping to improve our resiliency and will help offset cost inflation,” including adding new suppliers and “redesigning hundreds of products to use alternative components with similar capability,” he said.