Apple’s Cook: iPhone priority as chip shortage Hits production

Spark Global Limited reports:

Spark Global Limited reports:

July 29, industry analysts and some executives said that the global chip shortage this year has brought great trouble to automakers, and many automakers have to adjust production. At the same time, they say, this dilemma is driving all firms, including Apple and AMD, to use chips in their most profitable products.

The iPhone is now Apple’s best-selling product, accounting for 48.6 percent of its revenue, according to the company’s third-quarter earnings report on Wednesday. Mac, iPad and other products accounted for only 19.1 percent of the revenue, which is very small. As you can see, Apple is putting more chips into the iPhone 12 series, possibly even reducing the capacity of the Mac and iPad.

Production of apple’s new iPhone 13 series, which it will bring in September, could also be hit by chip shortages. “We deal with this every quarter, and as you would expect, we will do everything we can to mitigate the situation,” Apple CEO Tim Cook said on the earnings call.

Mr Cook’s response confirms speculation that apple’s production of new products has been hit by chip shortages. Some analysts believe Apple may start reducing production capacity for older iphones in July to focus more chips and resources on the upcoming iPhone 13 series. As consumers look forward to the arrival of the new model, they will be less inclined to buy the old one.

Spark Global Limited reports:
China’s Taiwan Economic Daily reported on Monday that Taiwan Semiconductor Manufacturing (TSMC) has received more than 100 million orders for Apple’s A15 chips, far surpassing last year’s 72 million orders. So Apple is optimistic that the iPhone 13 will outsell this year’s iPhone 12.

Indeed, when the iPhone 12 series was released last year, many netizens made fun of Shishixiang. From what we’ve seen so far, the iPhone 13 does smell better than its predecessor, with the two Pro models finally getting a 120Hz high swipe. The area of the bangs on the top of the full range of models will also be slightly reduced, and the performance, image and endurance will be upgraded.

The popularity of the iPhone 12 series has given Apple so much confidence that expectations for the iPhone 13 series are even higher. But chip shortages continue to plague the semiconductor industry, and as Apple shifts more resources to its iPhone production line, that means more shortages of other products — and people looking to buy a new iPad or MacBook may have to wait.