Since the beginning of this year, various industries around the world are in a deep crisis with regards to the shortage of chips. This shortage is not just for storage core chips but also includes charging IC’s. Initially, there were reports that Apple has a solid supply chain thus the chip shortage will not affect the company. However, the latest reports show that Apple is beginning to worry about the current situation. According to multiple sources, Apple is drastically cutting down the iPad production and allocating more parts to the iPhone 13 series. This means that the core shortage crisis is much more serious than the initial assessment.
The reports claim that the output of the iPad over the past two months has been reduced by 50% relative to the original plan. Furthermore, even parts that are originally for older iPhones are now used for the iPhone 13.
There are many similar parts between the iPhone and iPad models. Both iPhones and iPad share some core chips as well as peripheral chips. Thus, Apple can switch supplies between different devices in some cases.
In addition, the popularity of iPhone 13 sales this year has also overwhelmed Apple’s production line. This is mainly due to the fact that Apple has brought a lot of performance, screen, and other upgrades this year. Furthermore, the company did not increase the starting price of this series. This has been an advantage for the American manufacturer. Considering that most flagship series this year come with a price increase, the iPhone 13 series pricing is fair.
More importantly, the iPhone 13 Pro also introduces a high refresh screen for the first time. This is the biggest shortcoming of the iPhone in the past two years. After this year, the response has been very enthusiastic, and the sales of the Pro version have also been even better. This is also an important reason for Apple’s insufficient production capacity.
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Apple is really trying to increase the supply of the iPhone 13 series
Recently, Apple’s CEO, Tim Cook said that the company is really struggling. However, he added that the company is putting all its efforts to ensure an adequate supply of the iPhone 13 series. In Cook’s view, the sales of the iPhone 13 series are satisfactory to Apple. Relative to the iPhone 12 series, the demand is very strong. Apple has not been able to meet the market demand well.
Apple’s financial report for the 2021 fiscal year fourth quarter (third quarter) shows that the company hit a revenue of $83.4 billion. This is an increase of 29% year on year. The company’s profit for the quarter is $20.6 billion, an increase of 62% year-on-year. This is in line with market expectations. Apple’s profit this fiscal year has hit $94.6 billion, far exceeding the previous record of$ 58.5 billion in 2018.