Tim Cook hints Apple’s new iPad Pro and iMac with M1 chip may face a supply shortage

• Apple CEO Tim Cook says global component crunch could leak to short supply of the iPad Pro and iMac 2021.
  
• The company’s CFO Luca Maestri said it will hit $3 billion to $4 billion off revenue during the fiscal third quarter.
  
• Global chip shortage has affected car makers, PC companies and many other consumer electronics companies.

Apple recently launched a fresh portfolio of products including the much-anticipated iPad Pro and 2021 iMac running its own M1 chip. Although these products have garnered promising customer attention around the globe, there might be some hiccups in their supply.

The US-headquartered tech giant’s Chief Executive Officer (CEO) Tim Cook, in the company's Q2 2021 earnings call, hinted that there could be supply shortages for the new iPad Pro and iMac later in the year due to the global chip crunch. In his response to the ongoing chip shortage, Cook said the company expects to be "supply-gated, not demand-gated,” but only for the two products running M1 chip. So if you are planning to buy either of these, it's better to grab one before it gets out of stock.

It's the first time Apple has spoken about the component shortage, while there have been reports suggesting production delays in the past as well. Earlier this month, Nikkei Asia reported that chip shortages have delayed a key step in MacBook production -- the mounting of components on circuit boards for final assembly. The report also claimed that a shortage in the displays and display components are affecting the assembly of iPads.

When asked about how long will this shortage last, Cook said it is “difficult to give a good answer.” He says so because the company can't foresee the shortage without knowing the demand at present and in the coming months. But it's clear that as per Apple's estimation the impact of hurdles in production will be seen in the second half of 2021.

The CEO did not reveal much about the company's estimate on the demand or the units it will be shipping. The company's Chief Financial Officer (CFO) Luca Maestri warned that supply constraints are hurting the sales of iPads and Macs, two products that performed especially well during pandemic lockdowns. Maestri said this will hit $3 billion to $4 billion off revenue during the fiscal third quarter.

In its earnings call, Apple reported $89.5 billion in revenue during its 2021 fiscal second-quarter, which ran from January to March with $47.94 billion only from iPhones. Its iPhone production was unaffected by the sweeping global component shortage due to the ongoing pandemic.

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