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Apple iPad Shipments Won’t Be Affected Due To Chip Shortage

iPad Air 4

According to a new report, Apple’s iPad shipments are expected to remain stable in the second quarter of this year despite the impact of global chip shortages. The continuing shortage of integrated chips is caused by supply chain issues and weather-related events during the global health crisis, such as the frost event in Texas that shut down the chip factory in Austin.

As the production capacity of chip factories declined during the pandemic, as people buy equipment for their home life, the surge in demand has led to price increases as reported by MacRumors. As a result, electronics companies bought almost all the available supplies, causing chip makers to be caught off guard. But so far, the shortage seems to have only slightly affected the tablet market, which continues to follow its seasonal pattern. According to DigiTimes data, global tablet PC shipments totaled 35.95 million units in the first quarter of 2021, a decrease of 22.7% month-on-month and a year-on-year decrease of 45.5%.

However, according to the report, the release of the new iPad Pro model will help Apple buck the trend in the global market, and it is expected that most of the non-Apple brand tablet shipments in the second quarter will have a high probability of continuous decline. Digitimes Research’s data shows that the continuous decline in shipments in the first quarter was due to the off-season effect, and the number in the second quarter is expected to continue to be seasonally affected.

Suppliers of unbranded or “white box” tablets are said to have been severely hit by shortages, and their market share has been replaced by cheap models from branded suppliers. DigiTimes reported that the white box tablet computer 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 have a supply shortage when it is launched on May 21 due to the production of the mini-LED display used in the device. problem.

In general, Apple will feel the impact of the chip shortage, and due to the supply constraints affecting the iPad and Mac, it is expected that its revenue in the third quarter of 2021 will drop by approximately $3 to $4 billion. Apple said that the combination of iPad and Mac shortages and very high demand levels is expected to affect revenue in the second half of 2021.