Apple’s supply chain recovering? According to a new report from DigiTimes and as shared by MacRumors, it would appear that Apple’s supply chain woes might be coming to an end. Or at the very least seeing big improvements.
The report outlines that suppliers are starting to resolve shortfalls for various components (likely silicon related) and as a result, Apple has been able to ramp up production volumes. Demand for many of Apple’s key products including the iPhone 13 range, the all-new MacBook Pro as well as iPad line has been very strong. But unfortunately, demand has consistently outstripped supply in the last several months.
Component shortages of course are nothing new in the pandemic era. Suppliers have been impacted by numerous factors linked to COVID-19 such as labour shortfalls and the hugely increased demand for tech due to work from home rules and lockdowns. The trade war that the United States sparked with China has also compounded the issues faced by the semiconductor industry.
Apple largely shielded itself from the effects of the shortfalls early on in the pandemic. Their capital position and market power combined with the early ordering of parts enabled the company to go about business as usual. But towards the end of 2021, the impact of the pandemic started to catch up on the tech giant. Fortunately, it would seem that these problems have been short-lived if DigiTimes are correct in their reporting.
Apple’s CEO Tim Cook always urges caution about overreliance on supply chain analysis. According to the CEO, the reporting is rarely an accurate reflection of the situation and often represents a brief snapshot at best. Supply chain movement is fluid and the situation can change rapidly. Even from day to day in some cases. But it does like its good news for Apple and as a result, production should continue to ramp up for all key products over the coming months. Is Apple’s supply chain recovering? Or is this a case of misreporting? Time will tell!