Apple iPad, MacBook Production Delayed Over Chip Shortage: Report

Apple iPad, MacBook Production Delayed Over Chip Shortage: Report

Apple Inc’s AAPL MacBook and iPad devices are facing production delays due to the ongoing global semiconductor chip shortage that is taking a wider toll on electronic appliances and the automotive sectors, Nikkei Asia reported on Thursday.

What Happened: The report citing sources said the global component shortage has caused delays in a key step before the final assembly in MacBook production, while a shortage of displays and display components resulted in some iPad assembly.

The delay has forced Apple to push back a portion of component orders for the MacBook and the iPad to the second half of the year from the first half, the report said.

The ongoing chip shortage has severely hit automakers from Detroit to Tokyo — including Tesla Inc. TSLA and Ford Motor Company F — who have been forced to produce their most profitable products first. The shortage, which seems to be worsening, has disrupted global supply chains and is expected to impact smaller tech players even more heavily.  

See Also: Supply Shortages Are Forcing Automakers To Halt U.S. Production

Why It Matters: Apple is known to have managed its complicated supply chain efficiently despite the size of its operation. It has so far remained insulated from the ongoing shortage that has roiled global automakers’ production plans. Apple customers have so far not complained of any delays.

Production plans for Apple's flagship iPhones have so far not been affected by the supply shortage but the supply of some components remains tight, according to the Nikkei Asia report.

Price Action: Apple shares closed 1.34% higher at $127.90 on Wednesday.

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Posted In: Chip ShortageiPadiPhoneMacBooksemiconductorsSupply ChainTim CookNewsRetail SalesTechMedia