The ongoing global chip shortage that we are seeing across all industries is worsening, according to a new analyst report, which says delivery times have reached a danger zone.
While Apple has largely avoided shortages so far, its Mac and iPad product lines could suffer particularly this quarter as chip wait times have risen to 17 weeks. As Bloomberg reported, a new analysis from Susquehanna Financial Group says chip wait times have increased from 16 weeks in March to 17 weeks in April, "suggesting that users are becoming more desperate to secure supplies." For more constrained components such as power management chips, lead times are nearly 24 weeks, and for smaller companies looking to order chips, wait times exceed a massive 52 weeks. Because Apple is a top-tier customer for its suppliers and masters the manufacturing process, the company has been able to keep component supplies steady so far. During the conference call However, in its second-quarter earnings report, the company said it expects the impact of the chip crisis to affect Mac and iPad shipments.
Apple iPad & Mac: Chip manufacturer TSMC is at risk
Apple supplier Foxconn also recently warned that the situation is getting worse. Another source of potential problems highlighted in the Bloomberg report is the continuation of Taiwan's COVID safety measures, which include reducing water usage, which some fear could affect chip production. Apple's chipmaker TSMC (Taiwan Semiconductor Manufacturing Co.) is affected, but for now does not expect the measures to affect its operations. It is still unclear to what extent the shortage will affect Mac and iPad production and availability this year. But it is estimated that automakers - the hardest hit industry - will lose $110 billion in revenue in 2021 due to the chip crisis. (Photo by Elinaxx1v / Bigstockphoto)
