Apple is reportedly facing a shortage of crucial chips used to manage power consumption in iPhones and other devices.
Bloomberg He quotes people familiar with the matter, who told the publication that supply problems will complicate the company’s ability to meet Christmas demand for new iPhones. However, it is unclear to what extent the shortage will affect the devices. Additionally, vendors are likely to prioritize Apple over other customers who need the scarce parts, depending on From Bloomberg sources.
The shortage comes from growing demand for chips coupled with supply chain disruptions caused by COVID-19. 5G is likely to be a factor as well. Bloomberg notes that Apple’s main chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) previously said that 5G smartphones require 30 to 40 percent more chip content than 4G phones. With the iPhone 12 and other devices making the jump to 5G this year, it makes sense that demand for silicon has increased.
Further away, Bloomberg notes that the uncertainty caused by the pandemic has led customers to stockpile supplies of components in the event of a major shortage. Huawei is a big factor too: The China-based phone maker stockpiled components ahead of the September deadline for US sanctions.
IPhone 12 Pro sees a two to three week delay on Apple’s Canadian site, iPhone 12 is still in stock
These issues will compound the problems of the iPhone 12, which relies on power management more than previous models, according to Bloomberg. This is due to the additional camera features and 5G capabilities, both of which increase Apple’s need for additional power management chips. However, the California-based company sources power management components from several companies. The iPhone 12 Pro, for example, uses a Texas Instruments component to manage the camera’s power, while a similar chip from STMicroelectronics and one from Qualcomm handle the power for the 5G modem.
Apple also designs its own power management part. Apple acquired technology and assets from Dialog Semiconductor in 2018 for $ 600 million (about $ 787 million Canadian), which it uses for these internal chips.
Unfortunately, diversified parts sources will not mitigate supply problems. Apple is aware of the problem, and CEO Tim Cook told analysts in a recent conference call that there would be supply restrictions for the iPhone 12, Mac, iPad, and some Apple Watch models. However, Cook did not specifically mention power management chips.
Bloomberg notes that iPhone 12 Pro orders placed in the US via Apple’s website won’t arrive until late November or early December, while the regular iPhone 12 currently shows no delay. In Canada, the iPhone 12 has no delay either, but the 12 Pro is listed as a two to three week wait. It’s worth noting that the 12 Pro Max and 12 mini won’t be available to pre-order until November 6.