Apple Expecting iPad and Mac Supply Shortages in Second Half of 2021

[the8thark]

The issue here from what I've heard is a shortage but not in the way most people think.
The industry as a whole underestimated the 2020 demand for parts. Thus what they ordered in 2019 to be made and ready for 2020 was too low. The consumer demand far outstripped this supply.

Now in 2021 there is a scramble to get more parts made so more products can be sold because the demand is still there. The above 2019/2020 issue is affecting 2021 because a lot of people missed out in 2020 and are still in the market for the product in 2021 thus high demand still and the supply has not ramped up that much. There is a limit to how many parts can be made per day/week.

The backlog of people who missed out in 2020 needs to be filled as well as 2021 demand. It'll be a while before the rolling backlog is cleared up. Many new customers even now in 2021 automatically get put on the backlog because they are interesed now (for the first time) but can't buy because zero supply. So they just add to the huge list of people waiting to buy.

Meanwhile the scalpers are laughing all the way to their immoral bank.

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Also as an aside Apple is not against stooping low as to use FOMO (Fear of missing out) as a technique to try and drive up future sales. Though realistically with Apple products, it's just a longer wait time. You are not missing out entirely.
Thisonly matters with things like iPhones if you are a yearly adopter because it shortens the time you have your phone before you upgrade to the next.

For most Mac purchasers 6 months more waiting time is not too much of an issue. A few business customers might hate it but realistically even business would want ant new hardware setup industry tested and all the apps approved working before they do their purchases so the wait is not so bad.
The average customer if they save up and buy the best Mac they can afford and keep it for as long as possible should be ok too. 6 months waiting on a Mac you'll keep for 5-10 years is not that long in the scheme of things.

If things go past 6 months, to 1 year or more - like with the PS5 and Series X consoles or 3000 series GPUs or whatever else, that's when the issues arise. A console released in 2020, being easily purchasable only in 2022 (according to the rumours) doesn't help anyone at all.

 

[Mr. Dee]

Well, at least I'll get to play with it at the store at the end of May.

 

[JippaLippa]

I can't believe I am going to type this.

The new iMac design is growing on me.

I don't get why people complained so much about the chin...
I think it's distinctive and it makes it look like a unique product, instead of an ipad on a fancy stand.

 

[adib]

M1 is in shortage? More likely A12.

I've ordered an iPad base model in 17 April, scheduled to arrive in 10 May.

Meanwhile I've ordered an M1 Mac Mini in 20 April (custom-order with 16GB RAM) and arrived in 27 April.

 

[justin0712]

Well, at least I'll get to play with it at the store at the end of May.

Lucky you. Out of our 9 Apple stores, I believe 3 of them are running like normal. The closest one to me is operating with limited services. No products out etc...

You can order for pickup, drop off for repair and pickup but that is about it. Nothing on display. I refuse to drive into the city for the flagship location on Michigan Ave.

 

[Mr. Dee]

Lucky you. Out of our 9 Apple stores, I believe 3 of them are running like normal. The closest one to me is operating with limited services. No products out etc...

You can order for pickup, drop off for repair and pickup but that is about it. Nothing on display. I refuse to drive into the city for the flagship location on Michigan Ave.

I didn’t say which store. I actually was referring to Best Buy. The Apple stores near me are by appointment only and you either look at the item you are interested in then leave. Best Buy was the only time I ever got hands on with the iPhone 12.

 

[LonderJan]

I can't believe I am going to type this.

The new iMac design is growing on me.

The majority of people whining about the new design will never admit that they will eventually get one anyhow and grow to like it. Bravo on coming out of the closet

 

[justin0712]

I didn’t say which store. I actually was referring to Best Buy. The Apple stores near me are by appointment only and you either look at the item you are interested in then leave. Best Buy was the only time I ever got hands on with the iPhone 12.

Consider yourself lucky still. My Best Buy is slow on updating Apple products for display outside of the iPhone.
Still rocking the Series 5 Apple Watch at the Apple kiosk. They barely put the iPad Air 4th Gen out last month.

 

[justin0712]

The majority of people whining about the new design will never admit that they will eventually get one anyhow and grow to like it. Bravo on coming out of the closet

We can throw in some complaints are from people likely never to purchase an iMad regardless of design.

 

[Apple4U]

Apple today announced its earnings for the second quarter of 2021 and held an earnings call during which Cook was asked what we can expect for Macs and iPads during the second half of the year in terms of supply.

Cook said that he would not provide product level details, but that there would be supply issues affecting the iPad and Mac lines.

"To Luca's point about shortages, those shortages primarily affect iPad and Mac," he said. "We expect to be supply gated, not demand gated."

The question was related to the chip shortages that have been affecting many technology companies. One analyst asked Cook when supply constraints might ease and when the industry might overcome some of the supply dynamics, and Cook said it was difficult to give a good answer, but Apple would do its best meeting product demand.Apple CFO Luca Maestri confirmed that Apple has seen an impact from the chip shortages and will see a sequential decline of approximately $3 to $4 billion revenue in Q3 2021 due to iPad and Mac supply constraints.Rumors have already suggested that the 12.9-inch M1 iPad Pro will be in short supply when it launches this Friday, though that may be due to issues with the mini-LED display. Apple is preparing to launch both new M1 iPad Pro models and new M1 iMacs, and it sounds like customers who want one of the devices should be prepared to order as soon as pre-orders go live in order to avoid long waits for the new products.

Article Link: Apple Expecting iPad and Mac Supply Shortages in Second Half of 2021

Personally I'd like to hope they don't release the current iMac, as I believe it can be improved much more and if the M2 or whatever it is called is in production now, it makes no real sense for Apple to go out on a limb with an M1 iMac where even on these bb's there are significant concerns over design specs, ports, bezels etc.

I have no doubt they would sell, but if they sell and then there is an iMac upgrade in October/November along with the new version of the 27in. it may hit the overall sales rather than increase them and earlier purchasers of an M1 may be quite disgruntled. Of course things change all the time, but May to October which could be the gap between an M1 or M2(M1X)whatever it is called could be very divisive and hit future sales.

Better they hold off on the iMac completely in my opinion. Resolve some of the potential customer concerns, but if they have already tooled up on the new iMac design, then no doubt they will produce it, but a shame in respects as I believe the iMac has so much more to offer than the latest 24in. bezelled M1.

Its horses for courses obviously, so there may be a happy willing set of consumers for the new iMac, as its keenly priced, attractive to some and still leaves most 21.5in. iMacs in its wake, but it just seems not completely thought through.

So if the chip shortages create new iMac shortages running into months, then it will collide with their next iMacs

 

[Apple4U]

Personally I'd like to hope they don't release the current iMac, as I believe it can be improved much more and if the M2 or whatever it is called is in production now, it makes no real sense for Apple to go out on a limb with an M1 iMac where even on these bb's there are significant concerns over design specs, ports, bezels etc.

I have no doubt they would sell, but if they sell and then there is an iMac upgrade in October/November along with the new version of the 27in. it may hit the overall sales rather than increase them and earlier purchasers of an M1 may be quite disgruntled. Of course things change all the time, but May to October which could be the gap between an M1 or M2(M1X)whatever it is called could be very divisive and hit future sales.

Better they hold off on the iMac completely in my opinion. Resolve some of the potential customer concerns, but if they have already tooled up on the new iMac design, then no doubt they will produce it, but a shame in respects as I believe the iMac has so much more to offer than the latest 24in. bezelled M1.

Its horses for courses obviously, so there may be a happy willing set of consumers for the new iMac, as its keenly priced, attractive to some and still leaves most 21.5in. iMacs in its wake, but it just seems not completely thought through.

So if the chip shortages create new iMac shortages running into months, then it will collide with their next iMacs and potentially then have M1 iMacs in production that will be surpassed by the next generation iMac very quickly, and many customers may hold off purchasing the M1 iMac. Often the idea of creating demand by announcing a shortage works, but with the news about the newest M2(or whatever it is) being already in production, this time it might just cause customers to pass the new iMac by.

 

[justin0712]

Personally I'd like to hope they don't release the current iMac, as I believe it can be improved much more and if the M2 or whatever it is called is in production now, it makes no real sense for Apple to go out on a limb with an M1 iMac where even on these bb's there are significant concerns over design specs, ports, bezels etc.

I have no doubt they would sell, but if they sell and then there is an iMac upgrade in October/November along with the new version of the 27in. it may hit the overall sales rather than increase them and earlier purchasers of an M1 may be quite disgruntled. Of course things change all the time, but May to October which could be the gap between an M1 or M2(M1X)whatever it is called could be very divisive and hit future sales.

Better they hold off on the iMac completely in my opinion. Resolve some of the potential customer concerns, but if they have already tooled up on the new iMac design, then no doubt they will produce it, but a shame in respects as I believe the iMac has so much more to offer than the latest 24in. bezelled M1.

Its horses for courses obviously, so there may be a happy willing set of consumers for the new iMac, as its keenly priced, attractive to some and still leaves most 21.5in. iMacs in its wake, but it just seems not completely thought through.

So if the chip shortages create new iMac shortages running into months, then it will collide with their next iMacs

The former 21" and current 27" were never designed for the same set of consumer.

I am not sure anyone will be disgruntled when a new chip is announced for the 27". Anyone looking to replace their aging 27" wouldn't be running out to purchase the 24" and vice versa.
The 24" is barely launching, Apple would not replace it with a new chip less than 6 months after release unless something catastrophic happens with the current M1 chips.
Apples product lifecycle typically does not replace itself before at least the one year mark sans the iPad 3 Retina.

Let us not forget Apple needed to do something. The design of the iMac was dated over 10 years. The unibody iMac looks the same as the front of the now discontinued 21". You call the 24" a bezeled M1, for what reason? The bezel on the 21 and 27" are honking.

 

[G4DPII]

How do people not understand, it's a global shortage in high quality raw materials, it's not just the electronics industry that is suffering, there are also shortages in the medical sector, not enough high grade materials to make enough glass vials etc.

There is not enough of the right quality/type of sand to keep up with current demands.

 

[ggx12]

I can't believe I am going to type this.

The new iMac design is growing on me.

Apple best's designs are always ones were I am like 'YUCK' at the reveal. But then these become the classics.

Pretty sure seeing them in a store will make a lot of people change their minds.

 

[Bug-Creator]

I have no doubt they would sell, but if they sell and then there is an iMac upgrade in October/November along with the new version of the 27in. it may hit the overall sales rather than increase them and earlier purchasers of an M1 may be quite disgruntled.

Buy an 316 now and get pissed off when BMW releases a new M5 next year !!!!

 

[qoop]

I detested it when it was revealed.

I still detest it. It's lazy and bland.

 

[Octopuss]

You’re right! Tim Cool orchestrated this whole global chip shortage just to increase sales of an otherwise unpopular product - the iPad and mac. The plan to sell more by not selling more is genius!

Your lack of understanding how herd being controlled doesn't make it non-existent.

 

[sportpepper]

I don't get why people complained so much about the chin...

Why does that chin even exist? Maybe it creates more space for stuff inside? Seems like adding a few mm thickness behind the screen could allow space without compromising the view from the front.

 

[gnasher729]

Are Subaru and Tesla causing it as well? They've both had to do plant shut downs on occasion in the past months.

It's all about primitive old chips with old technology. Like car makers not getting chips to control your windscreen wipers. iMacs don't have windscreen wipers, but there are some old chips in every computer. I think the chips controlling backlighting for LCD screens are a problem. They are primitive by today's standards, but without them your LCD screen doesn't work. Getting M1 chips on the other hand - not a problem.

 

[gnasher729]

I still don’t understand how you can have a silicon shortage beyond labor and exporting issuer. What could’ve happened, Did you run out of sand or something?

It's all about old technologies. The story is that car makers stopped ordering some Stone Age chips and went for medieval chips. The places building the Stone Age chips closed down; the machines self destroy if they are not used, so they can't go back. The medieval chip makers don't have the capacity. And they don't want to build the capacity, they want to build capacity for modern chips! Would you want to invest - today - into 20 year old technology?

And there's a problem, if you have a chip with thousand or ten thousand transistors, you can't build it in 5nm technology, because it would be so small, you can't connect it! An M1 has 16 billion transistors. That plant may be able to build chips with one billion transistors, any chip with fewer transistors would have to be the same size, and would cost the same money. Because you need to connect it.

 

[deevey]

Personally I'd like to hope they don't release the current iMac, as I believe it can be improved much more and if the M2 or whatever it is called is in production now, it makes no real sense for Apple to go out on a limb with an M1 iMac where even on these bb's there are significant concerns over design specs, ports, bezels etc.

I have no doubt they would sell, but if they sell and then there is an iMac upgrade in October/November along with the new version of the 27in. it may hit the overall sales rather than increase them and earlier purchasers of an M1 may be quite disgruntled. Of course things change all the time, but May to October which could be the gap between an M1 or M2(M1X)whatever it is called could be very divisive and hit future sales.

Better they hold off on the iMac completely in my opinion. Resolve some of the potential customer concerns, but if they have already tooled up on the new iMac design, then no doubt they will produce it, but a shame in respects as I believe the iMac has so much more to offer than the latest 24in. bezelled M1.

Its horses for courses obviously, so there may be a happy willing set of consumers for the new iMac, as its keenly priced, attractive to some and still leaves most 21.5in. iMacs in its wake, but it just seems not completely thought through.

So if the chip shortages create new iMac shortages running into months, then it will collide with their next iMacs

No doubt there will be a beefier version with more ports, bigger screen, faster internals @ probably double the cost.

The iMac M1 will perform fantastically for its intended market. Not everyone needs additional ports, even "pro users".

Currently I use four ports due to a wired KB & mouse, I have no doubt that even the two port variant would be fast enough to last me a decent number of years. I like it a lot, bezels, chin and all.

I reckon anyone looking for a fast, good looking AIO, when comparing how they look, feel and perform side by side with a similar spec Dell/Asus/etc i7 machine, will not have a difficult choice to make in spending that extra $200.

 

[Bug-Creator]

if you have a chip with thousand or ten thousand transistors, you can't build it in 5nm technology, because it would be so small, you can't connect it!

Well you for sure could, it just wouldn't make sense, lots of blank space on the chip that you still have to pay for at the rate of the cutting edge fab and then you have a chip that might not be compatible with voltage and signal quality you used to get away with grandfather tech.

Car makers did indeed cancel some orders (just as pretty much everbody else) at the beginning of the pandemic and where surprised that demand went up instead of down.

So in short, fabs were down for a short time in early 2020 (1st wave in China), ran mostly low due to canceled orders in mid 2020 and then couldn't keep up with panned up demand for products that needed more and better chips.

 

[ghanwani]

The article is talking about fiscal quarters so the title is misleading. The shortages are impacting Apple right now in the first half of 2021.

 

[Darth Tulhu]

Apple best's designs are always ones were I am like 'YUCK' at the reveal. But then these become the classics.

Pretty sure seeing them in a store will make a lot of people change their minds.

The iMac G4 and the G4 Cube both were "OOOOH" at first reveal for me and still are. Some designs are timeless.

That said, once I got past the initial shock of the render/expectation vs reality mismatch I find that these iMacs are outstanding, and if I was in the market I would have had a REAL HARD TIME picking a color (although green may have been my first choice).

 

[IllinoisCorn]

The majority of people whining about the new design will never admit that they will eventually get one anyhow and grow to like it. Bravo on coming out of the closet

When I first saw it, I sort of laughed at how goofy the chin was and the child like colors. Like a super thin and super pricey Fischer toy.

A week or so later, I like the yellow and orange.

This product is not for me---my m1 Mac mini is fine, but if I were in the market for a smaller all in one, I would buy the yellow one in a heartbeat and the orange one if the yellow were out of stock.