Global chip shortage won’t affect Apple iPad shipments in Q2 this year

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The continuing shortage of integrated circuit chips was caused by supply chain issues and weather-related events during the global pandemic crisis, such as the freezing of the Texas chip factory in Austin.

As chip factories struggled to keep up with standard output during the epidemic, as people buy equipment for their home life, demand soared, leading to price increases. As a result, technology companies bought all the available supplies, causing the chip manufacturer’s production capacity to continue to run.

So far, the chip shortage has only slightly affected the tablet market, which continues to follow its seasonal pattern. According to the data, global tablet PC shipments totaled 35.95 million units in the first quarter of 2021, a decrease of 22.7% from the previous quarter, but a year-on-year increase of 45.5%.

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According to the report, the release of the new M1 iPad Pro model will help Apple emerge from a contrarian trend in the global market, and it is expected that most non-Apple brands’ shipments in the second quarter will experience a continuous decline.

Digitimes data shows that the continuous decline in shipments in the first quarter was due to the off-season effect, and the second quarter is expected to continue to be seasonally affected, witnessing a continuous decline of 6.6%.

Suppliers of unbranded or “white box” tablet PCs will be severely hit by chip shortages, watching their market share be replaced by cheap models from branded suppliers. DigiTimes reports that white box tablets may disappear from the market completely in 2022.

Although Apple was not affected by the chip shortage in the second quarter, Bloomberg reported that its 12.9-inch iPad Pro may be in short supply when it is launched on May 21. The reason is that the device uses the mini- LED display production has encountered problems.

In general, Apple will see the impact of the chip shortage and said that due to the supply constraints of iPad and Mac, it is expected that its revenue in the third quarter of 2021 will drop by approximately US$3 to US$4 billion.

Apple said that the combination of the shortage of iPad and Mac and the very high level of demand is expected to affect revenue in the second half of 2021.


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