MacBook and iPad production delayed as supply crunch hits Apple: report

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Production of some Apple MacBook and iPad models has been postponed due to a global component shortage, the Nikkei reported Thursday. Chip shortages have caused delays at a key production milestone for MacBook, the report said, adding that some iPad assemblies have been postponed due to a shortage of screens and display components.

Due to the delay, Apple has pushed back part of component orders for the two devices from the first half of this year to the second half, the report said, citing informed sources on the matter. Apple did not immediately respond to a request for comment from Reuters.

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According to the report, Apple’s production plans for iPhone models have not been affected by the supply shortage, however, the supply of some components for the devices is “quite tight”. The component shortage remains a supply chain issue for Apple, but has yet to impact product availability to consumers, Nikkei added.

Apple’s main supplier Foxconn had also warned of the chip shortage affecting customer supply chains, with businesses and consumers around the world facing an unprecedented shortage of semiconductor microchips. The Taiwanese company, the world’s largest contract electronics maker, reported October-December net profit of TWD 45.97 billion (about Rs. 11,850 crore) average of 11 analyst estimates compiled by Refinitiv.

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CFO David Huang said the company’s gross margin had been hit by the COVID-19 pandemic, but strong smartphone sales were still contributing to a stronger-than-expected performance in the fourth quarter, although it didn’t did not specify.

Formally known as Hon Hai Precision Industry, Foxconn’s fourth quarter revenue increased 15% year-over-year.

The main reason for this was a year-over-year increase in revenue of more than 15% from consumer electronics, including smartphones, which accounted for 63% of its business in the quarter, Foxconn said.

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The company had previously forecast fourth quarter revenue to be in a range of 3% decline and 3% gain from the previous year.

© Thomson Reuters 2021


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