Apple's iPhone unaffected by chip shortage hitting rivals

Posted:
in iPhone edited September 2021
New research claims that chip shortages mean smartphone manufactures are getting only 70% to 80% of their component orders -- but Apple's iPhone is unaffected.




Although other research says that Apple is now starting to feel the effects of the chip shortage across all its devices, it is faring better with the iPhone.

Counterpoint Research reports that it is lowering its global smartphone shipment forecast to an estimated 6% annual growth to 1.41 billion devices. Originally, the company predicted 9% growth, for a total of 1.45 billion phones.

"The smartphone industry was set for a strong rebound this year after COVID-19 had hit the market hard in 2020," says the research company in a statement. "Smartphone vendors placed large component orders from the end of last year, and consumer demand coming from delayed replacement purchases buoyed the market in the first quarter."

Subsequently, however, "some smartphone OEMS and vendors" reported receiving only 80% of their orders for key components during the second quarter of 2021.

How the component shortage is causing shipment estimates to drop. (Source: Counterpoint Quarterly Smartphone Forecast.)
How the component shortage is causing shipment estimates to drop. (Source: Counterpoint Quarterly Smartphone Forecast.)


"[The] situation seems to be getting worse as we move through Q3 2021," continues the company. "Some smartphone makers are now saying they are only receiving 70% of their requests, creating multiple problems."

Counterpoint says that 90% of the smartphone industry has been hit by these issues.

"The semiconductor shortage seems to affect all brands in the ecosystems," said Tom Kang, Research Director at Counterpoint Research. "Samsung, Oppo, Xiaomi have all been affected and we are lowering our forecasts. But Apple seems to be the most resilient and least affected by the AP shortage situation."

The research does not indicate how Apple could be escaping the shortage. However, previous reports into the issue have suggested that with its buying power, Apple may have stockpiled.

Read on AppleInsider

Comments

  • Reply 1 of 15
    lkrupplkrupp Posts: 10,323member
    Is stockpiling components anti-competitive? Is Apple a component monopolist? Is Apple a sick hoarder that needs therapy? Can the usual critics explain please?
    jas99watto_cobra
  • Reply 2 of 15
    mike1mike1 Posts: 3,130member
    Most of Apple's chips are custom to Apple. They can't be used elsewhere. It's not like there's a warehouse somewhere with chips that could be used in anything else. Stockpiling is what you do with with crude oil or corn. It's more a matter of securing manufacturing time and raw materials with foundries and using it to make what they need.
    watto_cobra
  • Reply 3 of 15
    JWSCJWSC Posts: 1,202member
    Although I happen to agree with this analysis, these analysts are like broken clocks, right twice a day regardless.  What insight does this firm that the others don’t?
    dewmewatto_cobra
  • Reply 4 of 15
    Two weeks ago I was in our local Costco and was told the iPhone SE would not be available for 2-3 months because of supply problems. 
    williamlondonwatto_cobra
  • Reply 5 of 15
    lkrupplkrupp Posts: 10,323member
    JWSC said:
    Although I happen to agree with this analysis, these analysts are like broken clocks, right twice a day regardless.  What insight does this firm that the others don’t?
    Tim Cook
    mike1jas99watto_cobra
  • Reply 6 of 15

    Nothing NEW!! Apple has been doing it, if I recall, for the last 15 years. Has the competition learned anything yet, or are they absolutely INCOMPETENT?

    jimdreamworxwatto_cobra
  • Reply 7 of 15
    dewmedewme Posts: 4,637member
    mltpa said:
    Two weeks ago I was in our local Costco and was told the iPhone SE would not be available for 2-3 months because of supply problems. 
    Costco has its own supply chain for acquiring products from manufacturers and distributors and getting everything sent out to its retail channels. A lot of these supply chains are currently facing delays and disruptions. Anything from a staffing shortage of buyers on its end to difficulties getting long haul trucking and freight handlers can cause delays that are totally independent of what’s happening on Apple’s side of the process.  
    jas9912Strangerswatto_cobra
  • Reply 8 of 15
    For businesses trying to acquire large quantities of phones from top-tier carriers, right now the shortage is real, particularly for the SE and 11. Today, Apple’s own direct to business ecommerce.apple.com portal shows a 5-6 week delay on the iPhone 11 128GB. 
    watto_cobra
  • Reply 9 of 15
    melgrossmelgross Posts: 33,334member
    mike1 said:
    Most of Apple's chips are custom to Apple. They can't be used elsewhere. It's not like there's a warehouse somewhere with chips that could be used in anything else. Stockpiling is what you do with with crude oil or corn. It's more a matter of securing manufacturing time and raw materials with foundries and using it to make what they need.
    While true, it doesn’t have to be an Apple custom chip. It could be any chip. If just one chip is experiencing shortages, then that’s the weakest link, and is enough to stop everything dead in its tracks. It doesn’t even have to be a chip, it can be anything. It can be a chemical use to clean boards, or insulators for wiring. Or connectors. Or glue.
    dewme12Strangerswatto_cobra
  • Reply 10 of 15
    lorca2770 said:

    Nothing NEW!! Apple has been doing it, if I recall, for the last 15 years. Has the competition learned anything yet, or are they absolutely INCOMPETENT?


    Indeed.  Back then I recall the criticism about Apple wasting all their money on acquiring way too many components (especially memory), since that forced them to not refresh models as fast, and this would obviously affect their bottom line, as people did not want to buy yesterday's technology.  Those geniuses thought Apple had a limited fanatical base that would always buy latest-greatest, and could never grow new consumers.  I guess they were right, and that is why the iPhone is relegated to a bit player in the smartphone market.
    edited September 2021 watto_cobra
  • Reply 11 of 15
    lkrupp said:
    Is stockpiling components anti-competitive? Is Apple a component monopolist? Is Apple a sick hoarder that needs therapy? Can the usual critics explain please?
    Just watch an episode of Doomsday Preppers, thats exactly what Apple did. 

    They just prepped for a supply issue rather than the end of days. There will be more shortages as we deplete the remaining rare earths and this is why they are investing to recycle and reuse them. 
    watto_cobra
  • Reply 12 of 15
    JWSCJWSC Posts: 1,202member
    lkrupp said:
    Is stockpiling components anti-competitive? Is Apple a component monopolist? Is Apple a sick hoarder that needs therapy? Can the usual critics explain please?
    Just watch an episode of Doomsday Preppers, thats exactly what Apple did. 

    They just prepped for a supply issue rather than the end of days. There will be more shortages as we deplete the remaining rare earths and this is why they are investing to recycle and reuse them. 
    Rare earths are like oil, with constant predictions of the end based on known reserves.  But “miraculously” they keep finding new deposits.
    lkruppwatto_cobra
  • Reply 13 of 15
    lkrupplkrupp Posts: 10,323member
    JWSC said:
    lkrupp said:
    Is stockpiling components anti-competitive? Is Apple a component monopolist? Is Apple a sick hoarder that needs therapy? Can the usual critics explain please?
    Just watch an episode of Doomsday Preppers, thats exactly what Apple did. 

    They just prepped for a supply issue rather than the end of days. There will be more shortages as we deplete the remaining rare earths and this is why they are investing to recycle and reuse them. 
    Rare earths are like oil, with constant predictions of the end based on known reserves.  But “miraculously” they keep finding new deposits.
    Yep, the world was supposed to have run out of oil a couple of decades ago ,according to the ‘experts’. The engineering concepts have already begun to be able to mine asteroids.
    watto_cobra
  • Reply 14 of 15
    If this is true, then answer this question: What is the release date of the new Apple Watch?
  • Reply 15 of 15
    melgrossmelgross Posts: 33,334member
    If this is true, then answer this question: What is the release date of the new Apple Watch?
    Apple said in the fall, one “leaker” said next week. True, eh.
    watto_cobra
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