Major iPhone supplier Foxconn says that it expects the ongoing chip shortage to continue well into the second half of next year, prolonging struggles of manufacturers, including Apple, to keep up with consumer demand, The Wall Street Journalreports.
Apple has been dealing with the chip shortage for the past several quarters, but it only started significantly impacting Apple’s business in the most recent quarter. The shortage of specific components and production constraints related to the ongoing public health crisis have impacted iPhone, iPad, Apple Watch, and Mac availability. Apple said that this past quarter, the shortages cost it $6 billion, and it expects the impact to be even more significant for the holiday season.
Foxconn is Apple's largest supplier for the iPhone, and while some reports suggest that production is improving, it's still a length away from being entirely normal. As the holiday season approaches, Apple is encouraging customers to get their holiday orders in early to ensure they receive them in time for the holidays, and the company has provided "order by" dates for some of its most popular products.
Apple has unveiled a whopping nine new products so far this March, including an iPhone 17e, iPad Air models with the M4 chip, MacBook Air models with the M5 chip, MacBook Pro models with M5 Pro and M5 Max chips, the all-new MacBook Neo, an updated Studio Display, a higher-end Studio Display XDR, AirPods Max 2, and now the Nike Powerbeats Pro 2.
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While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another six months or so, there are already plenty of rumors about the devices.
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My recommendation, If you don’t really need a new iPhone don’t buy one I would say. If you have an iPhone X to 12, keep it until it stops getting iOS updates. Yes, some will say, it’s your freedom, right and money. But it’s just my opinion.
The “chip shortage” is rather complex, new nodes, eg 5nm are fine, older nodes are not and a lot of companies are hording inventory so some of it is artificial. Also interesting to note is that RAM and flash prices are leveling out and even start declining again, an indication that the PC market will decline again. I think that the chip shortage as in wafer fab is going to end in H1 22 but that is only part of the supply chain.
Overall supply chain is a big mess and it will take long to recover.
