Apple April 8th 2021

Chip shortage could hit iPad production

April 8th 2021

A chip shortage crisis is becoming an increasingly serious problem. And one of the victims could be iPads. MacBooks have already been hit by the shortage, with the assembly of components on printed circuit boards, an important stage in the production of the device, suffering delays for this reason. iPads have also had delays in part of the assembly, however, due to a lack of screens and screen components. This is what the Nikkei Asia, which brought statements from experts about the even greater impact of this problem on smaller manufacturers of electronic devices.

A Apple Apple Inc. manages a powerful and complex supply chain very competently, which also helps it become one of the largest technology brands in the world. Because of this, Apple has been able to withstand the impact of component shortages, which have already been putting pressure on other electronics companies and car manufacturers.

Even though consumers Apple Although some people have not noticed the impact on the availability of the company's products, the lack of chips is already a focus of attention for the manufacture of iPads. The supply of some components for the devices is quite tight. In addition, the demand for electronic equipment, such as smartphones, tablets and computers, remains high during the pandemic. There are expectations of 18% growth in this market this year.

To get an idea of ​​what it would mean for iPads to suffer the impacts of the chip shortage, these devices from Apple are absolute leaders in the tablet market. In 2020, the devices accounted for 37% of worldwide sales over the period. There were 81,4 million units, including MacBooks and iPads, in total shipments last year.

Chip shortage alert

It is also noteworthy that, while announcing the profit increase 44% higher than the same period last year, Hon Hai, owner of Foxconn, warned about the shortage of processors. The major manufacturer of iPhones is certainly one of the most relevant players in the production chain of Apple, and the alert helps to express the level of the chip shortage problem.

For smaller tech companies, the situation can be much more complicated. According to Wallace Gou, president and CEO of Silicon Motion, a developer of controller chips that supplies Samsung and Kingston, among others, may run out of essential component stocks. Gou says he sees no end to this the scarcity, with the situation potentially being even worse for smaller electronics manufacturers in the market.

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