Apple Boss Warns of Product Shortage

Apple has warned of potential product deficiency later in the year.

A computer-chip shortage has been accelerated primarily by pandemic-driven disruptions over the past year.

Industries around the world are struggling to satisfy a surge in demand for products like cars, high-tech gadgets, and smartphones.

And Apple chief executive Tim Cook says supply issues could affect products that feature its M1 chip, which include the new iPad Pro and iMac 2021.

The shortage could threaten Apple’s profits, which is revealed on Wednesday were up 54% year-on-year.

“The shortages primarily affect iPad and Mac.

“We have an honest handle on our demand – but what everybody else is doing, I do not know.

“We will do our best, that’s what I can tell you.”

It would be “very, very difficult” to predict when the shortages would end, he added.

The huge cost of chip manufacturing facilities means they operate at near full capacity, so it’ll take time to satisfy the increased demand.

“While manufacturers and businesses scramble to undertake and solve the shortage in semiconductors, the present issues are often traced back to 2018 and therefore the beginning of the US-China trade war,” Ben Barringer, equity research analyst at Quilter Cheviot said.

“This has simply been exacerbated by the Covid crisis as companies look to satisfy the surge in demand they’re experiencing or are close to undergo as economies open up.”

Apple has seen sales of its phones, apps and other devices rise throughout the pandemic, as consumers spent longer working, shopping, and seeking entertainment online.

Customers continued to upgrade to Apple’s new 5G phones, unrolled last year, and purchased Mac computers and iPads to tackle working and studying from home.

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