Apple facing a severe shortage in the supply of Power chips for the iPhone 12 series.

Apple has received a tremendous response for the iPhone 12 series in terms of pre-orders, which was already expected by Apple due to which they increased their iPhone 12 production by 2 million units earlier. However, it seems like the increasing demand has led to a shortage of vital chips that manage the power consumption in the iPhone 12 series. It might lead the company to be unable to meet the demand for the iPhone 12 in the market during the holiday season. 

Despite the shortage, suppliers are likely to prioritize Cupertino, California-based Apple, and its power-hungry iPhone 12 over other customers lining up for scarce parts. The increasing demand for silicon and supply issues due to Covid-19 have been the main cause of shortage in the supply. As per the details, the 5G smartphones require 30% to 40% more chip content versus 4G, and the industry is still recovering from the pandemic and lockdown, due to which the supply is unable to meet the demand. 

Apple currently has multiple power-management chip suppliers, and due to this, an issue in one of those chip suppliers could affect the company. The company has also not been able to meet the demand of Chinese consumers and has recorded the worst quarterly revenue performance there since 2014. Since the Chinese market has companies like Huawei and Xiaomi, which are the major competitors, it seems like Apple will be losing a big slice of the market share to these companies in this case. Currently, the company is trying to cope up with all the demands until late November.

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