Apple is facing iPhone 12 chip supply issue during its most crucial quarter

Looks like Apple iPhone 12 demand is better than expected for the firm. According to Bloomberg, the iDevice maker is not able fulfil the shortage of vital chips that manage power consumption in iPhones and other devices. This may affect the holiday demand of the handset as well. However, for now, it is not for sure how serious is the issue. But considering that this is Apple’s crucial launch quarter, this might be a big deal. The report adds that there are some supply-chain disruptions as well.

It is worth adding that Apple’s power chip supplier, TSMC or Taiwan Semiconductor Manufacturing Co. said in October that 5G smartphones require 30% to 40% more chip content as compared to 4G phones. “That and uncertainty over the course of the pandemic is spurring customers to cache components for fear of running out, especially after major smartphone maker Huawei Technologies Co. had stocked up massively ahead of a September deadline for U.S. sanctions,” said the report.

Also read: Qualcomm forecasts strong first quarter as Apple, others ramp up 5G phones

And since power management is more important than ever in iPhone 12 considering more powerful cameras, OLED screens and 5G capabilities, it is more important for Apple right now than anything else. 

However, this shouldn’t come as a surprise as Apple CEO Time Cook in a recent conference call with analysts did warn about supply constraints for iPhone 12, Mac, iPad and some Apple Watch models. It is difficult to predict for how long these constraints will remain.

Meanwhile, Qualcomm Inc forecast fiscal first-quarter revenue above Wall Street estimates on Wednesday as it predicted sales of 5G smart phones would balloon to more than half a billion units next year, powered in part by new Apple Inc iPhone 12 models.