Apple Expecting iPhone and iPad Supply Constraints in September Quarter

[MacRumors]

During today's earnings call covering the third fiscal quarter of 2021 (second calendar quarter), Apple CFO Luca Maesteri said that Apple is expecting supply constraints to affect the iPhone and the iPad in the coming quarter.

"The supply constraints that we've seen in the June quarter will be higher in the September quarter," said Maestri. The constraints will impact iPhone and iPad sales in particular.

It is not clear if these predicted supply constraints will affect the iPhone 13 models that are expected to launch in September.

Apple CEO Tim Cook was asked whether the supply constraints will continue into the holiday quarter, but Cook said that he doesn't want to predict that. "We're going to take it one quarter at a time," he said. "We will do everything we can to mitigate whatever set of circumstances we're dealt." Cook went on to say that the constraints that Apple is seeing are the same constraints that are impacting other companies as well.

The majority of the constraints are of the variety that others are seeing. I would classify it as industry shortage. We do have some shortages in addition to that 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. It's a little bit of that as well. As I said before, the latest nodes, which we use in several of our products, have not been as much of an issue. The legacy nodes are where the supply constraints have been, on silicon.

Cook also said that though Apple is expecting supply constraints, component costs in the aggregate have declined, but Apple is currently paying out more for freight than it would like.

Article Link: Apple Expecting iPhone and iPad Supply Constraints in September Quarter

 

[SirAnthonyHopkins]

September is a month not a quarter.

 

[MacDevil7334]

It is not clear if these predicted supply constraints will affect the iPhone 13 models that are expected to launch in September.

I think it’s a pretty safe bet the iPhone 13 will be affected. Seems like they are trying to set expectations…

 

[Apple_Robert]

We get this kind of news a lot of the time and people on MR still manage to get their phones.

 

[SactoGuy18]

It's more likely going to affect iPad than iPhone, since Apple has likely emphasized producing as many iPhones as possible given the current chip shortage limitations.

 

[felixroqu3]

shocking

 

[Johnny907]

… what’s new? Supply is always constrained at launch.

 

[TheYayAreaLiving 🎗️]

Marketing 101 talk…

Hoping this does not delay September's event. People are waiting what Apple has in store.

Is this a marketing trick for you to upgrade to get a new iPhone this September?

When have we heard Supply is not constrained at the product launch... Never.

 

[Rafterman]

So...same as always.

 

[kazmac]

Is this a marketing trick for you to upgrade to get a new iPhone this September?

When have we heard Supply is not constrained at lunch... Never.

Sheesh...Apple is constraining supply at lunch now too? Why I am not surprised? 😉 /s

 

[LFC2020]

Is this a marketing trick for you to upgrade to get a new iPhone this September?

Yep, same old garbage every year, yet people still get their iPhones on launch day.

 

[Cosmosent]

I think he is simply referring to (upcoming) supply constraints due to the Delta variant.

And here, I think he is simply folding-in iPhone Assembly (& final testing) as a supply constraint.

Need to have workers to do those tasks.

ALL Bets are Off right now.

 

[Wags]

Starting the hype a little early this year?

 

[The Barron]

Get your pre-orders ready for the iPhone 13. 😜

 

[TheYayAreaLiving 🎗️]

Get your pre-orders ready for the iPhone 13. 😜

I’ll be up early morning to place my pre-order for an iPhone

 

[macduke]

I’ve read that there is a shipping container shortage. They’re piled up at ports around the world in countries that received a bunch of PPE but don’t really export much and they don’t want to pay to send them somewhere else. That might be part of why freight is so expensive?

 

[Apleeseed84]

Hahaha you though waiting until July for an ipad since April was bad, wait till the iphone gets out

 

[Octopuss]

Is it that time for annual "supply chain issues" cry already? Good, It means goodies to be released soon!
A-ha-ha-ha

 

[BuffyzDead]

Apple is expecting iPhone and iPad Supply Constraints in September Quarter​

Which means, September Quarter Revenue will Only be ~$96.Billion,
as opposed to ~$105.Billion.

All Companies should have such dire problems ?

 

[AppleM]

Get your pre-orders ready for the iPhone 13. ?

More important thing?

 

[eifelbube]

That is potentially good news. Just skip 13 and resume with 14 in Sept. 2022. As of then, skip odd versions, donate them to the envuronment, recognize climate change. 16 in 2024, etc., then move to 3-year intervals. Apple is known for innovation … here is a chance Apple, to set an example (and live up to your own claims about eco-friendliness & benefits of becoming 100% renewable enery dependent. Can’t renew cobalt, doesn’t grow on trees …

 

[sfwalter]

September is a month not a quarter.

I could give it pass if they said the October quarter. Since October is start of the 4th quarter. But not September

 

[rui no onna]

I could give it pass if they said the October quarter. Since October is start of the 4th quarter. But not September

At least at my work, we normally reference the ending month of the quarter, not the first month for accounting purposes. Also, fiscal quarters are not the same as calendar quarters.

 

[Hyperchaotic]

Get your pre-orders ready for the iPhone 13. ?

Unfortunately my XS is still like new, might have to wait a few more years. My iPad Air 2 to Pro 11/2021 was good though. Playing Divinity in 60FPS, no stutters.

 

[0924487]

I think it would be good for the US as a whole if Apple can invest in their own chip manufacturing capabilities using their excess cash and federal research grant. It’s good for the world too serving as a back up to ASML and TSMC technology backbone. Just like ASML + TSMC did for Intel. The world always needs an alternate technology route to fall back on just in case the leader fails to lead for whatever reason.

Get your pre-orders ready for the iPhone 13. 😜

I will yield this years supply to you guys then. Was gonna buy the new iPad Pro 12.9 2021 and the new IPhone 13 Pro Max. I can wait another year so we don’t have to compete for supplies.

I think he is simply referring to (upcoming) supply constraints due to the Delta variant.

And here, I think he is simply folding-in iPhone Assembly (& final testing) as a supply constraint.

Need to have workers to do those tasks.

ALL Bets are Off right now.

No, China is handling everything non-chip-and-screen related portion of iPhone component supply, manufacturing and assembly. China will be a very stable supplier for iPhone 13, and there will be no constraint on this front.

By chip I do t mean just the main chip. NAND (storage), DRAM chips, all sorts of controllers, Modem, etc., are big problems. Display too.

Is it that time for annual "supply chain issues" cry already? Good, It means goodies to be released soon!
A-ha-ha-ha

It’s an investor meeting

… what’s new? Supply is always constrained at launch.

This year is “extremely”

I’ve read that there is a shipping container shortage. They’re piled up at ports around the world in countries that received a bunch of PPE but don’t really export much and they don’t want to pay to send them somewhere else. That might be part of why freight is so expensive?

Also, we can’t export “recyclables” to Asia anymore.

Also, there are marine traffic jams at major canals.

September is a month not a quarter.

From investors point of view September is a quarter. It’s Sep to Dec, or Q4.