Apple has product shortages as Tim Cook warns

Apple warned of potential product shortages some time ago this year.

Pandemic-driven disruptions have been accelerated a computer-chip shortage over the past year.

Industries worldwide struggle to meet a surge in demand for products such as high-tech gadgets, cars, and smartphones.

Tim Cook, Apple chief executive, said that supply issues might affect products that feature its M1 chip, including the new iMac and iPad Pro 2021.

The shortage might threaten Apple’s profits. Tim Cook told analysts that they expect to be not demand-gated but supply-gated. The needs primarily affect Mac and ‌iPad‌.

He added that it would be challenging to predict when the shortages end.

The considerable cost of chip manufacturing facilities means they operate at near-total capacity, so it might take time to meet the demand.

Equity research analyst at Quilter Cheviot Ben Barringer told the BBC that While businesses and manufacturers try to solve the shortage, the current issues might remind us of the beginning of the US-China trade war in 2018.

Apple experiences increased sales of its apps, phones and other devices throughout the pandemic.

A surge in iPhone sales in China

Apple’s boss said that the results reflected optimism about the days ahead.

Apple’s rival tech firm Facebook also experiences raise revenues and profits.

However, the social media giant warned Apple that its latest software release might undermine its prospects this year.

As consumers spent more time shopping, working, and seeking entertainment online, Apple started to see sales of its apps, phones, and other devices rise throughout the pandemic.

Customers continued to buy Apple’s new 5G phones and bought Mac computers and iPads to work and study from home.

Fitness and music apps were also boosted during the lockdown.

In China, sales nearly doubled, leading to revenues for the first several months of this year of $89.7bn (£64.3bn), which is more than a 50% rise compared to earlier this year.

Profit was $23.6bn, up from $11.3bn for the same period last year.

Chief executive Tim Cook said that this quarter reflects the optimism consumers seem to feel about better days ahead, as well as the enduring ways Apple products have helped their users meet this moment in their own lives.