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Apple faces supply crunch! But Why?

Apple has delayed its production of iPads and iMacs due to some missing parts. Nikkei Asia reported that the manufacturing factory is facing some supplying crisis right now.
Apple is the brand that can easily procure its products from any part of the country, but right now, it’s missing something to proceed with the manufacturing.

What is missing from the components?

Chips are essential components for an iPad or any other Apple product. Before the assembly of the final products takes place, chip installation takes place on the device. Chips are the essence of the exceptional products that the company delivers.

Another crucial thing that is yet to assemble in some units of iPads is display components. These components were short for the whole shipment. Apple further stated that the products were reaching in the latter half of the year.

Moreover, the experts have warned several suppliers where Apple products are preferred over others that there will be some shortage. Small businesses and sellers will be affected the most in the first half of the year.

However, the Apple officials didn’t want to comment on this matter. But, some executives have further stated that the suppliers who have the contract in the first half of the year will receive the products on time.

Samsung is also worried about Supply crunch

Besides Apple, there is another tech company that is worried over the supply of semiconductor chips. Samsung has also reported that it may also suffer the same losses as Apple. The period between April and June is a little too tight for them.

Experts Take

These two companies,  Samsung and Apple, are making sure their users are happy and content. Peter Hanbury, a partner with consultancy Bain & Co, said that these big companies have a lot of leverage with the suppliers to demand that their orders reach them before the time.

“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.

Apple annually sells more than 200 million iPhones, MacBooks, iPads, and iPods, and these products rank fifth in the consumer segments. This makes Apple the powerful mega-giant with the force to procure all the raw materials instantly. But if the news has reached the world, that means there is a critical issue.

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