Supply of Apple’s Mac computers and iPad tablets will worsen in the second half of this year as the pandemic continues to disrupt supply chains, especially for electronics.
- Apple is expecting Mac supply shortages in the second half of 2021.
- Supply of iPads, especially mini-LED ones, will dwindle as well.
- As a result, Apple will lose $3-4 billion in quarterly revenue.
- The crushing global chip shortage is a major factor.
- Apple’s supply chain is affected by the pandemic.
Tim Cook: Expect iPad and Mac shortages
As part of Apple’s quarterly earnings release yesterday announcing a massive $89.6 billion in March revenue, the company’s executives warned investors and analysts to expect a shortage of Macs and iPads later in the year.
Luca Maestri, the company’s finance chief, has confirmed to Silicon Valley investors and analysts on an earnings call that the crushing global chip shortage has indeed affected iPad and Mac production. And because of that, he added, shoppers should brace themselves for a shortage of Mac computers and iPad tablets in the second half of 2021.
Delayed Mac and iPad production will cost Apple $3-$4 billion in quarterly revenue.
The constraints come from semiconductor shortages that are affecting many industries and it’s a combination of the shortages and the very high level of demand that we’re seeing for both iPad and Mac.
Following up on Luca’s comment, CEO Tim Cook jumped in to calm down investors, confirming that those shortages primarily affect the iPad and Mac lines. “We expect to be supply gated, not demand gated,” he added.
The crushing global chip shortage hurts Apple
He couldn’t estimated when supply constraints might ease.
Most of the issue is legacy nodes, not just in our industry but other industries as well. In order to answer that question accurately, we would need to know the true demand from each player and how that changes over the next few months, so it’s difficult to give a good answer.
He wouldn’t say which semiconductor parts were in short supply:
Most of our issue is on licensing those legacy nodes, there are many different people not only in the same industry, but across other industries that are using legacy nodes.
Apple is no island, of course.
The company operates in the same environment as its peers although a deep-pocketed company of Apple’s stature may cope with the situation better because its buying power allows it to secure supply of critical components years in advance.
“We have a good handle on our demand, but what everybody else is doing, I don’t know,“ Cook explained. “We will do our best, that’s what I can tell you,” he added.
The New Apple gadgets shipping from May 21
Apple today quietly announced that the new iPad Pro, iMac, Apple TV 4K, purple iPhone 12 and AirTags will all start shipping beginning Friday, May 21 for pre-order customers. Pre-orders for these devices are opening tomorrow, April 30.