Limited supply of chips used to manage power consumption in iPhones could limit Apple’s ability to meet expected strong demand for its latest handset during the Q4 buying period, Bloomberg reported.
Citing unnamed sources, the business publication said the supply issue stems from higher demand for raw materials used to make the parts and continued disruptions caused by the Covid-19 (coronavirus) pandemic, which have been a factor since widespread closure of manufacturing facilities in Q1 [1].
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 first 5G iPhone [2] and other devices unveiled last month.
Constraints on components for handsets have been worsened by stockpiling, Bloomberg added, with Huawei said to have been buying-in large amounts of stock ahead of tougher US restrictions. [3] 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 [4].
In Q3 the company lost its place in the top three smartphone manufacturers by shipments, Canalys figures showed [5], with challenger Xiaomi taking its place behind Samsung and Huawei.
[1] https://www.mobileworldlive.com/asia/asia-news/foxconn-chief-targets-return-to-full-capacity
[2] https://www.mobileworldlive.com/featured-content/home-banner/apple-embraces-5g-for-iphone
[3] https://www.mobileworldlive.com/devices/news-devices/huawei-mulls-chip-supply-options-as-us-sanctions-bite
[4] https://www.mobileworldlive.com/devices/news-devices/late-iphone-launch-weighs-on-apple-profit
[5] https://www.mobileworldlive.com/featured-content/home-banner/xiaomi-grabs-share-from-huawei-outsells-apple-in-q3
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