Daily Management Review

Supply Crunch Forces Apple To Delay Assembly Of MacBook And iPad: Nikkei


The global shortage of components has forced Apple Inc to postpone manufacturing of some MacBooks and iPads, said a report published by Nikkei Asia.
This is a clear signal that the unprecedented global supply crunch has not spared even Apple which has massive procurement power.
The report, quoting sources with information on the matter, noted that one of the key step in MacBook production -- the mounting of components on printed circuit boards prior to the final assembly, has been delayed by the chip shortages. On the other hand, shortage in supply of displays and display components has resulted in the postponement of assembling of some of the iPads.
Component orders for the two devices has been pushed from the first half of this year to the second half by apple because of the delays in production, said sources. This also indicates that the global chip shortage is growing more serious and the smaller tech companies could be hurt even more significantly, said industry sources and experts.
The supply chains of Apple are one of the most complicated in the world and the iPhone maker is known to well manage its supply chains. The company is well known for the agility with which it can mobilize suppliers. These attributes have so far enabled Apple to evade the global component shortage that has already forced global auto companies to suspend production while production at electronic companies have also been affected.
According to sources quoted in the report, the supply shortage has so far not impacted the manufacturing of the iconic iPhones of the company even though sources have claimed that the current position of supply of some of the components of the iPhones is "quite tight". The Nikkei report however summed up that on the overall, Apple is facing a supply chain issue because of the component shortage but has not yet impacted the availability of the company’s products for customers.
No comment on the report was available from Apple.
In a recent announcement, the issue of the global chip shortage being a potential problem for it in the growing more serious was recently made by Apple rival Samsung Electronics, the biggest smartphone maker of the world. the South Korean firm had also said that it has employed a dedicated team of employees to resolve the issue.
According to Peter Hanbury, a partner with consultancy Bain & Co, the bargaining power of large tech and electronics companies such as Apple, Samsung Electronics and HP is very high over its suppliers and these companies can demand that its suppliers give priority to their orders in times of limited capacity. "They also have developed sophisticated purchasing and supply chain capabilities, including collaborative planning with semiconductor manufacturing partners and strong visibility into where their products are manufactured so they can see ahead of shortages like this," he said.
Every year, Apple sells about 200 million iPhones, over 20 million MacBooks, 19 million iPads, and more than 70 million pairs of AirPods.