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Apple warns supply shortage might affect iPad and Mac production this year

Apple said in its earnings report that supply shortages in the third quarter of 2021 will heavily affect the Mac and iPad lineups.
Apple warns supply shortage might affect iPad and Mac production this year
File photo: 12-inch iPad Pro

The tech giant expects supply constraints in the second half

The CEO of Cupertino giant Tim Cook said that they expect to be supply-gated, not demand-gated. This is an answer to how the ongoing chip shortages impact the electronics industry worldwide. Cook admitted that Apple was able to avoid the constraint for the second quarter of 2021. 

However, it wouldn't be the same for the second half of this year. According to a source, Apple has largely been able to secure all the necessary 5nm chip production it needs. But then, the dilemma lies in the production of other components.

Moreover, an analyst asked Cook about when this supply shortage affecting Apple may ease. The chief executive said it was hard to give a good answer noting,

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...

Before this earnings report, Apple CFO Luca Maestri said the supply constraints would be one reason why Apple expects greater seasonal revenue declines heading into the June quarter. Maestri reported to the investors that the shortage could cost the company damage of around USD 3B to USD 4B for the third quarter. 

However, he's positive that Apple will still post a strong double-digit growth year over year. He added that they wish they have more inventory of iPad and Mac. On the other hand, Cook assures the investors that they are handling the demand quite well and will continue doing their best.

Just in April this year, Apple revealed its new 24-inch iMac and iPad Pro models equipped with the company's M1 chip. The iMac will be sold in the United States this April 30 and will be arriving in customers and select Apple Store locations on the second half of May.

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