Apple is facing a growing number of device shortages as it enters the incredibly important holiday shopping quarter. A new report from Bloomberg details that orders for Apple’s newest iPhone 13, iPad mini, iPad, Apple Watch Series 7, and MacBook Pro devices are back ordered until as late as December…
Apple has repeatedly warned of supply shortages in earnings calls with investors. At first, the company predicted the shortages would primarily affect the Mac, but it more recently warned that the iPhone and iPad would also be affected. Apple’s struggles come amid a broader industry chip shortage as well as global shipping delays.
The iPhone 13 Pro, for example, is still in tight supply nearly a month after its release:
The iPhone – Apple’s flagship product, accounting for about half of its sales – is the highest-profile case of shortages. One month after going on sale, the iPhone 13 Pro is hard to find in every color, configuration, and size. That’s not usually the case, according to Apple store employees, some of whom say they’re increasingly dealing with frustrated customers.
The Bloomberg report also notes, however, that older devices like the iPhone 11 and iPhone 12 are also delayed until as far out as mid-November. The Apple Watch Series 7 is also back ordered by upwards of a month, as is the recently announced MacBook Pro. Even various iPad models are pushed back to the end of November.
The report explains, however, that Apple’s recent wave of product launches could be evidence the company plans to correct the imbalance soon:
Given its ability to mitigate supply-chain problems in the past, Apple could correct the imbalance before the end of December. Wall Street is generally upbeat. Launching so many products at once has been seen as a signal of confidence.
“Apple’s announcements suggest that it is significantly better at navigating these disruptions,” compared with other manufacturers, Citigroup Inc. analysts Jim Suva and Asiya Merchant said in a report.
Some products such as the HomePod mini, AirPods 3, AirTag, Apple TV and AirPods Pro, however, are available in good supply and immediate shipment or pickup from retail stores.
Analysts expect Apple to generate a record-breaking $120 billion in revenue during the holiday quarter (fiscal Q1), up 7% year-over-year. Whether or not these supply shortages put a dent in that number remains to be seen.
Apple will report its fiscal Q4 2021 earnings on October 28, and we expect the company to dive deeper into the supply chain struggles during its earnings call with investors.
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