The global chip shortage has affected all major tech companies. Apple was not majorly impacted by the shortage because it has a good hold on the market. However, the iPhone maker is now expected to be hit by the chip shortage, according to DigiTimes.
The report states that the demand for the iPhone 13 series will be high but Apple will not be able to meet the demand until “at least” February. The new flagship iPhones which were released in September have been selling like hotcakes. While the devices are not radically different compared to the previous generation, they do bring new slight design changes and improved camera systems.
Cash reserves help Apple control the supply
The reason Apple did not suffer from the global chip shortage as much as its competitors is because of its large cash reserves. The company made sure that its demands were met by “reserving” production lines at TSMC (Taiwan Semiconductor Manufacturing Company) and other supply partners. It has somehow worked flawlessly till now but even the iPhone supply chain is now expected to suffer.
The report adds that even older generation (legacy) chips which are used in budget models of the iPhone, the iPad, the Apple Watch, and the Apple TV are also in short supply. As a result, many devices are not being produced (built) due to the lack of internal components’ supply. Currently, Apple uses older chips in the iPhone 11, the iPhone 12, the $329 iPad model, and the Apple TV 4K.
Apple CEO Tim Cook said in an investor’s note that the global chip shortage cost the company $6 billion in revenue last quarter. The loss is expected to continue to grow, as the shortage of chips intensifies. The iPhone has more or less been on the safe side till now in terms of supply but it’s expected to change.
