Bloomberg reports that iPhone 12 Pro orders are now slipping into late November and early December, due to surprising demand for the handsets, as well as shortages of two specific components.
The report indicates Apple is having issues in obtaining enough power management chips, even though they are sourced from multiple suppliers.
Apple Inc. is grappling with a shortage of vital chips that manage power consumption in iPhones and other devices, people with knowledge of the matter said, complicating its ability to meet holiday demand for the latest version of its marquee gadget.
It’s unclear to what extent the bottleneck may limit iPhone availability during its crucial launch quarter, typically Apple’s busiest.
COVID-19 related supply chain disruptions and increasing demand for silicon across a range of products are the culprits behind the production shortages.
Increasing demand for silicon across a range of products and supply-chain disruptions from Covid-19 are the main causes of the shortage, according to the people. Main Apple chipmaker Taiwan Semiconductor Manufacturing Co. said in October that 5G smartphones require 30% to 40% more chip content versus 4G. That and uncertainty over the course of the pandemic is spurring customers to cache components for fear of running out, especially after major smartphone maker Huawei Technologies Co. had stocked up massively ahead of a September deadline for U.S. sanctions.
While Apple likely has priority agreements in place, at this point that doesn’t appear to be sufficient to keep up with demand.
A Nikkei Asia Review report says Apple is facing supply constraints for specific parts, including power chips and LiDAR components.