Global chip supply constraints are affecting 'everybody but Apple'

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in iPhone
Current component and chip shortages plaguing the smartphone industry are now affecting "everybody but Apple," according to new wireless industry research.

Credit: Andrew O'Hara, AppleInsider
Credit: Andrew O'Hara, AppleInsider


A new report from Wave7 Research indicates that the shortages are affecting makers of lower-cost Android handsets, with Samsung and OnePlus being particularly hard hit. However, the shortages do not appear to be affecting Apple iPhone, Mac, or iPad as significantly.

"Sources have told Wave7 Research that Apple was able to lock down chipset supply well ahead of time. This was not the case for other OEMs," Wave7 Research's Jeff More told PCMag.

Earlier in 2021, Qualcomm said that it was struggling to meet demand for processor silicon used in Android devices. Although the global chip shortages, which the U.S. government has dubbed a "national security" issue, are wreaking havoc on a variety of industries, Apple appears to have escaped the brunt of it.

For the wireless market, the shortages appear to be affecting carriers, channels, and even stores unevenly. One store manager at a T-Mobile location told Wave7 that the supply constraints are affecting "everybody but Apple."

The issues appear to affecting OnePlus particularly hard, with the company's market share dipping to 10% in August because of short supply of certain models. Samsung is seemingly prioritizing production of higher-end flagships, since supply of its Galaxy S21 and S21 Ultra are stable while its lower-cost devices are out of stock at many locations.

Additionally, as JP Morgan highlighted on Monday, Apple's market share did not fall in July as one would expect ahead of a September iPhone event. In other words, Apple isn't seeing the typical seasonal decline in the summer.

The supply constraints may eventually catch up with Apple, however. During its last earnings call, Apple CFO Luca Maestri said that the Cupertino company would see worsening supply issues in the September quarter. Specifically, Maestri said the problems could begin to affect iPhone and iPad sales specifically.

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Comments

  • Reply 1 of 26
    DAalsethDAalseth Posts: 2,783member
    Well, Supply Chain is TC’s area of expertise. 
    MisterKitbuttesilverronnStrangeDayspscooter63p-dogwatto_cobra
  • Reply 2 of 26
    mknelsonmknelson Posts: 1,120member
    Uhhh, K.

    So devices that usually ship in 3-5 days are coming up at weeks? But, no effect?
    gatorguywatto_cobra
  • Reply 3 of 26
    netroxnetrox Posts: 1,415member
    Tim Cook's the man when it comes to chain of supply and control of processors. 


    MisterKitronnBeatsKTRpscooter63watto_cobra
  • Reply 4 of 26
    crowleycrowley Posts: 10,453member
    I'm most surprised that OnePlus had more than 10% market share.  Always took them for a bit player.
    watto_cobra
  • Reply 5 of 26
    crowley said:
    I'm most surprised that OnePlus had more than 10% market share.  Always took them for a bit player.
    I think it is specific to US market where options are fairly limited due to carriers controlling the mobile phone market largely. In the rest of the world, OnePlus is a much smaller player as you noted. It does not matter anyway because they are a sub-brand of BBK who has 30%+ market share worldwide. BBK is #1 in worldwide smartphone market share if we include all of their sub-brands.
  • Reply 6 of 26
    sflocalsflocal Posts: 6,092member
    There is where it shows that Tim Cook is probably underpaid.  His supply-chain expertise is legendary.
    sagan_studentp-dogigorskywatto_cobra
  • Reply 7 of 26
    techconctechconc Posts: 275member
    DAalseth said:
    Well, Supply Chain is TC’s area of expertise. 
    Yes, that’s a big part of it.  The other is that Apple is one of the few companies with the $ Billions to throw around for capital in advance and also willing to assume the risk associated with it.
    sagan_studentbaconstanghucom2000FileMakerFellerigorskywatto_cobra
  • Reply 8 of 26
    DAalsethDAalseth Posts: 2,783member
    mknelson said:
    Uhhh, K.

    So devices that usually ship in 3-5 days are coming up at weeks? But, no effect?
    FWIW If I were to order the iPP I want today, it would be delivered within a week. That’s right from the Apple Store App. 
    ronnwatto_cobra
  • Reply 9 of 26
    baconstangbaconstang Posts: 1,104member
    techconc said:
    DAalseth said:
    Well, Supply Chain is TC’s area of expertise. 
    Yes, that’s a big part of it.  The other is that Apple is one of the few companies with the $ Billions to throw around for capital in advance and also willing to assume the risk associated with it.
    Yup.  It's like playing poker.
    The bets you make depend on how big's the bank...
    edited August 2021 ronnwatto_cobra
  • Reply 10 of 26
    larryjwlarryjw Posts: 1,031member
    Is Apple the world's number one supplier of anything? 

    Most companies survive by mass marketing of cheap stuff, which means they need to have a massive supply of components.

    Almost everyone outsells Apple, except in Apple's niche areas. Apple simply doesn't need the massive supply that others do. 
  • Reply 11 of 26
    larryjw said:
    Is Apple the world's number one supplier of anything? 

    Most companies survive by mass marketing of cheap stuff, which means they need to have a massive supply of components.

    Almost everyone outsells Apple, except in Apple's niche areas. Apple simply doesn't need the massive supply that others do. 
    While true (in bold), your comment does not address the massive shortages that are affecting production in other markets. The automotive market is highly constrained right now. Many dealerships in my area have few cars on the lot and purchasing a custom order will require a delivery time of 3 months from now. 
    MauiMac5341KTRwatto_cobra
  • Reply 12 of 26
    melgrossmelgross Posts: 33,510member
    I’m not too worried about shortages for this September quarter. Possibly they’ll fall short by a little bit. Remember that they warned about possible serious shortages for the past June quarter as well, and then had the best June quarter they ever had—by a lot. Just minor shortages for the Mac and iPad, not too much.

    companies have to do their duty about warning about possible problems, and Apple did their duty with their warnings.
    watto_cobra
  • Reply 13 of 26
    melgrossmelgross Posts: 33,510member
    larryjw said:
    Is Apple the world's number one supplier of anything? 

    Most companies survive by mass marketing of cheap stuff, which means they need to have a massive supply of components.

    Almost everyone outsells Apple, except in Apple's niche areas. Apple simply doesn't need the massive supply that others do. 
    Nope! Apple is the biggest buyer of memory. The biggest buyer of chips for everything else. One of the biggest buyers of capacitors and resistors, etc.
    StrangeDayswatto_cobra
  • Reply 14 of 26
    sflocal said:
    There is where it shows that Tim Cook is probably underpaid.  His supply-chain expertise is legendary.
    Isn't that his job?  It seems he's already getting paid substantially more than most company leaders...
  • Reply 15 of 26
    mknelson said:
    Uhhh, K.

    So devices that usually ship in 3-5 days are coming up at weeks? But, no effect?
    That is really not what the article said.  If you read Samsung can't deliver phones so it is biasing production to high-end phones and not producing lower profit phones.  that is nowhere the same as minor delays, but still being produced and sold
    watto_cobra
  • Reply 16 of 26
    BeatsBeats Posts: 3,073member
    larryjw said:
    Is Apple the world's number one supplier of anything? 

    Most companies survive by mass marketing of cheap stuff, which means they need to have a massive supply of components.

    Almost everyone outsells Apple, except in Apple's niche areas. Apple simply doesn't need the massive supply that others do. 

    Apple is the main supplier of iPhones, iPads, Apple Watches etc. This is why they’re facing monopoly crap. 
  • Reply 17 of 26
    KTRKTR Posts: 279member
    Beats said:
    larryjw said:
    Is Apple the world's number one supplier of anything? 

    Most companies survive by mass marketing of cheap stuff, which means they need to have a massive supply of components.

    Almost everyone outsells Apple, except in Apple's niche areas. Apple simply doesn't need the massive supply that others do. 

    Apple is the main supplier of iPhones, iPads, Apple Watches etc. This is why they’re facing monopoly crap. 
    I guess that’s why people say that their products worm seamlessly well together?
    watto_cobra
  • Reply 18 of 26
    JWSCJWSC Posts: 1,203member
    As I’ve said before, this is the power of being able to funnel billions in cash, sometimes years in advance of need dates, to secure future component orders.  Tim Cook or no Tim Cook, not many companies can do this.
  • Reply 19 of 26
    applguyapplguy Posts: 235member
    Beats said:
    larryjw said:
    Is Apple the world's number one supplier of anything? 

    Most companies survive by mass marketing of cheap stuff, which means they need to have a massive supply of components.

    Almost everyone outsells Apple, except in Apple's niche areas. Apple simply doesn't need the massive supply that others do. 

    Apple is the main supplier of iPhones, iPads, Apple Watches etc. This is why they’re facing monopoly crap. 
    Apple is the only supplier of iPhones, iPads, and Apple watches.
  • Reply 20 of 26
    flydogflydog Posts: 1,123member
    mknelson said:
    Uhhh, K.

    So devices that usually ship in 3-5 days are coming up at weeks? But, no effect?
    You made that up. I can’t find a single iPad or iPhone that is taking “weeks” to ship. Even the new iPad Pro is available for pickup tomorrow. 
    watto_cobra
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