Apple has been power chips shortage that is bottlenecking the production of the iPhone 12. This is coming during a time when iPhone 12 demands are off the charts because of the holiday season. If Apple is not able to figure it out, the availability problem of iPhone 12 could lead to lesser sales. Though, it is clear that the manufacturers and suppliers would prioritise Apple in providing parts than any other company needing the same.
Why the sudden problem in supply?
The higher need of Silicon in chips and the supply-chain issues that initially delayed the iPhone launch is the problem. COVID has slowed down production, and the requirement of a higher amount of Silicon in 5g smartphone is also a valid reason. Due to the supply chain issues and the increased requirement companies are piling up components to deal with the shortage. This is in turn, causing a further shortage in the components.
Also, the reduced production due to fewer workers and the still-recovering market from lockdown is also causing the supply chain problems. Though these issues might delay the iPhone 12 pro max release and availability, it doesn’t come as a surprise. Apple already knew such problems might occur and delayed the launch. But according to them, such problems are hard to predict and difficult to be prepared for.
What does it mean for Apple?
Considering that the iPhone 12 is a very powerful device, it needs proper power management for good battery life. The addition of 5g, capable cameras, and an efficient but powerful processor is also why power chips are needed. Apple had already told us about the supply problems it might face. But didn’t specifically talk about power management chips.
From 2014, Apple has recorded the worst revenue this quarter in 2020. And though, it is understandable that COVID has slowed things down, it still doesn’t look good for Apple. Even to investors, it seems like Apple is losing to brands like Xiaomi and Huwaei after its poor performance in China. This is in one of the most crucial and largest markets for the brand.
The already delayed chip production might also shift the availability of the iPhone 12 mini and the iPhone 12 pro max. This is also not a great thing for Apple and enthusiasts who are looking forward to getting the top model. What do you think regarding the same? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.