The Surprise Popularity of the iPhone 12 Pro Leads to Chip Supply Constraints
If you're contemplating purchasing an iPhone 12 Pro, you might need to be patient longer than anticipated to receive it. It seems Apple is grappling with a shortage of power management chips, crucial for supporting the device's new camera features and 5G, as reported by Bloomberg.
This isn't entirely unexpected. The global pandemic caused chaos in supply chains earlier this year, and this specific shortage appears to stem from the escalated need for silicon due to these challenges. The iPhone 12 Pro lineup itself was delayed by approximately a month due to manufacturing issues arising from supply chain disruptions. Moreover, 5G smartphones are purportedly in need of 30-40% more "chip content" compared to 4G, according to Taiwan Semiconductor Manufacturing Co (TSMC) and as reported by Bloomberg. Huawei and other tech companies stockpiling components have further exacerbated these shortages.
Apple, being Apple, is likely to receive priority from suppliers in such situations, as reported by Bloomberg's anonymous sources. As we move towards the holiday season, a perfect time for tech companies to amass sales by capitalizing on boosted consumer demand, the iPhone 12 Pro's delivery window has stretched to 3-4 weeks on Apple's U.S. store. However, the iPhone 12 is unaffected.
Additionally, the iPhone 12 Pro appears to be more popular with consumers than Apple anticipated. Consequently, Apple has rerouted components intended for iPads to the iPhone 12 Pro, and they plan to acquire over 20 million units of older iPhone models such as the iPhone 11, iPhone SE, and iPhone XR to bridge the gap this holiday season.
Moreover, Apple is reportedly asking its suppliers to manufacture 2.5 million MacBooks with its new ARM-based silicon by early 2021. This represents around 20% of total MacBook shipments in 2019 and will be powered by TSMC using its 5-nanometer process technology. This news substantiates earlier rumors of ARM-based MacBooks featuring the A14 chip from the new iPhones and iPad.
The specific MacBook models set to debut with Apple Silicon are yet to be revealed, but Bloomberg recently suggested that a 13-inch MacBook Air, a 13-inch MacBook Pro, and a 16-inch MacBook Pro would likely be the first. While the exact launch timeline remains uncertain, Apple's third fall launch event is set for November 10, so stay tuned!
- The shortage of power management chips, crucial for supporting the iPhone 12 Pro's new camera features and 5G, is largely attributed to the escalated need for semiconductors due to supply chain disruptions caused by the global pandemic.
- According to TSMC and reports by Bloomberg, 5G smartphones like the iPhone 12 Pro require 30-40% more "chip content" compared to 4G devices, which further exacerbates the semiconductor shortage.
- Purportedly, tech companies like Huawei stockpiling components have also contributed to the current semiconductor shortage, making it challenging for companies like Apple to meet consumer demand for devices like the iPhone 12 Pro.
- Despite facing challenges with the semiconductor shortage, Apple is expected to receive priority from suppliers due to its market position, as reported by Bloomberg's anonymous sources, although it may lead to extended delivery windows for products like the iPhone 12 Pro.
