Apple Might Face iPhone Chip Shortage

Limited supply of chips that manage iPhone power consumption could limit Apple’s ability to meet demand for its latest smartphone models during the buying period at the end of the year. The supply issue stems from higher demand for raw materials used to make the parts and continued disruptions caused by the pandemic, which have been a factor since widespread closure of manufacturing facilities in Q1.

Partners struggling to meet orders are said to be prioritising those from Apple, though it is unclear if it will be enough to meet the demand for the company’s new 5G iPhone and other devices unveiled last month. Constraints on components for handsets have been worsened by stockpiling, with Huawei said to have been buying-in large amounts of stock. This is alongside other companies stocking further in advance due to uncertainty of availability as the pandemic rumbles on.

During its latest earnings statement, Apple pointed to an expected sales bump from the launch of its new devices, which were unveiled later than in previous years. In Q3 the company lost its place in the top three smartphone manufacturers by shipments, with Xiaomi taking its place behind Samsung and Huawei.