Apple has now officially opened its books and reported record profits in Q2 2021. But the company also warns of supply shortages that could affect its Mac and iPad product range.
Speaking to analysts, CEO Tim Cook said Apple had no supply shortages in Q2. But that will change in the third quarter. When asked how Apple was able to avoid supply shortages in Q2 2021, despite an industry-wide chip shortage and record demand for iPad and Mac, Cook explained:
We didn't have a material supply shortage in Q2. At the end, all the buffers and compensations collapse. That happens all the way through the supply chain. That allows you to go a little bit higher than what we expected going into the quarter.
Tim Cook: "Difficult to predict impact"
The supply bottlenecks in the third fiscal quarter will primarily affect the Mac and iPad product range, Cook and CFO Luca Maestri explained during the conference call.
We expect this to be a supply, not a demand.
Cook also explained that “legacy nodes” are the biggest problem in the shortage and it is hard for Apple to predict the impact because so many players are involved. Apple has also seen a boom in demand for iPads and Macs over the past year as people work and learn from home amid the COVID-19 pandemic. Maestri told investors that the restrictions have Company could cost Apple about $3 billion to $4 billion in revenue in the third quarter of the fiscal year. Despite this, he said Apple expects "strong double-digit" revenue growth for the quarter compared to the previous year.
Long delivery times to be expected for new iMac and iPad Pro models?
We wish we had higher inventory levels of iPad and Mac.
The comments from Cook and Maestri come as Apple prepares to release new versions of the iMac and iPad Pro, with pre-orders beginning on Friday, April 30. Apple has not provided detailed information on the availability of these new products, only saying that the first orders will arrive in the second half of May. Today's comments from Cook and Maestri seem to indicate that the new iMac and iPad Pro may be difficult to get hold of at first. (Photo by Elinaxx1v / Bigstockphoto)
