May 3, 2021
Apple has warned of possible product shortages by the end of the year.
The microchip shortage has been accelerated mainly by disruption from last year’s pandemic.
Industries around the world are struggling to meet increased demand for products such as cars, high-tech gadgets and smartphones.
Apple CEO Tim Cook said supply issues could affect products with its own M1 chip, including the new iPad Pro and the 2021 iMac.
The shortage could threaten earnings for Apple, which revealed a 54% year-over-year increase on Wednesday.
“We expect it to be supply and not demand,” Cook told analysts.
“The shortages mainly affect the iPad and the Mac.
“We have a good handle on our demand – but I don’t know what the others are doing.”
“We will do our best, that’s what I can tell you.”
It would be “very, very difficult” to predict when the shortages will end, he added.
The huge cost of chip making factories means they are running near full capacity, so it will take time to meet the increased demand.
“As manufacturers and businesses scramble to try and solve the semiconductor shortage, the current problems date back to 2018 and the start of the US-China trade war,” Ben told the BBC. Barringer, Equity Research Analyst at Quilter Cheviot.
“It has simply been exacerbated by the Covid crisis, as businesses seek to meet the surge in demand they are experiencing or are about to experience with the opening of economies.”
Apple has seen sales of its phones, apps and other devices increase throughout the pandemic, with consumers spending more time working, shopping and seeking entertainment online.
Customers continued to switch to Apple’s new 5G phones, launched last year, and bought Mac computers and iPads for work and home study.