MacBook, iPad Production Delayed as Supply Crunch Hits Apple: Report

Production of some of Apple's MacBook and iPad models has been postponed due to a global component shortage, the Nikkei reported on Thursday. Chip shortages have caused delays in a key step in MacBook production, the report said, adding that some iPad assembly was postponed because of a shortage of displays and display components.

As a result of the delay, Apple has pushed back a portion of component orders for the two devices from the first half of this year to the second half, the report said, citing sources briefed on the matter. Apple did not immediately respond to a Reuters request for comment.

According to the report, Apple's production plans for iPhone models have not been affected by the supply shortage, however, the supply of some components for the devices is "quite tight." The shortage of components remains a supply chain issue for Apple, but has not yet impacted any product availability for consumers, Nikkei added.

Apple's major supplier Foxconn had also warned of the chip shortage affecting supply chains to clients, with businesses and consumers across the globe facing the brunt of an unprecedented shortage in semiconductor microchips. The Taiwanese firm, the world's largest contract electronics maker booked an October-December net profit of TWD 45.97 billion (roughly Rs. 11,850 crore), a 4 percent decline from a year earlier, and compared with the TWD 50.89 billion (roughly Rs. 13,120 crore) average of 11 analyst estimates compiled by Refinitiv.

Chief Financial Officer David Huang said the company's gross margin was hit by the COVID-19 pandemic but strong smartphone sales still contributed to stronger-than-expected performance in the fourth quarter, though he did not elaborate.

Formally called Hon Hai Precision Industry, Foxconn's fourth-quarter revenue rose 15 percent on the year.

That was mainly driven by a more than 15 percent revenue increase on the year from consumer electronics including smartphones, which accounted for 63 percent of its business in the quarter, Foxconn said.

The company had previously forecast fourth-quarter revenue to be in a range of a decline of 3 percent and gain of 3 percent from a year earlier.

© Thomson Reuters 2021

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