Tim Cook, Apple’s CEO, issued a warning that a global chip shortage will affect iPhone production

Reuters

Apple has now warned that the global chip shortage that is currently impacting iMacs and iPads will soon affect iPhone production, signaling a slow revenue growth.

Highlights

  • During the investor call, CEO Tim Cook revealed that the chips affected by the shortages are made with older technology, but they’re still necessary as supporting parts to manufacture the iPhone. 

  • Also Read: Phones, Laptops Could Be Expensive Till 2022, As Global Chip Shortage Looms Large

Tim Cook, however, didn’t really reveal if this shortage will extend to Apple’s next fiscal quarter — a period when Apple usually sees a massive bump in sales, especially iPhone sales, due to the holiday season.

Cook said in a statement, “We do have some shortages,” Cook said, “where the demand has been so great and so beyond our own expectation that it’s difficult to get the entire set of parts within the lead times that we try to get those.”

Angelo Zino, an analyst with research company CFRA revealed that Apple could be stockpiling chips for its next-generation iPhones in a way that could potentially harm its existing models.

He said in a statement to Reuters, “Apple will want as many chips as it can get its hands-on,” Zino said. “But when you couple that with the existing supply constraints, Apple is likely going to have a more difficult time meeting demand this year.”