Ongoing supply constraints could affect iPhone, iPad in September quarter

Apple is warning that it expects ongoing supply constraints and shortages to affect sales of the iPhone and iPad lineups in the upcoming September quarter.

During the company's earnings call with analysts Tuesday, Apple CFO Luca Maestri said supply issues that the company faced in the June quarter "will be higher in the September quarter." He said that the issues could affect iPhone and iPad sales in particular.

Additionally, Apple CEO Tim Cook was asked about whether the constraints would continue into the company's holiday quarter — historically its busiest. Cook declined to answer that question directly.

"We're going to take it one quarter at a time. We will do everything we can to mitigate whatever set of circumstances we're dealt," Cook said.

However, despite the supply issues, Apple still expects "very strong double-digit growth" during the September quarter.

During its second quarter earnings call, Apple first cautioned that supply problems could affect the iPad and Mac product lineups in the second half of 2021. It now appears that the issues could snarl iPhone sales during the period.

Cook added that component costs in aggregate are actually decreasing for Apple. However, he did say that the Cupertino tech giant is paying more for freight than it would like.

At another point in the call, Cook added that it's seeing the same types of shortages that the entire industry is, suggesting the holdup relates to legacy chips. However, he also added that greater-than-expected demand for iPhone and iPad devices is also making it harder to ship devices within the required lead times.

5 Comments

pulseimages 8 Years · 656 comments

About 3 years ago

Hmm…should I buy an 12 Mini now or hope I can buy the 13 Mini in September?

ArchStanton 3 Years · 200 comments

pulseimages said:

Hmm…should I buy an 12 Mini now or hope I can buy the 13 Mini in September?

IF Apple is constrained by parts, the new device is likely getting the lion's share of what parts are available.

Keep in mind Apple said this about Mac and iPad last quarter but it ended up being minor. This could be Apple sandbagging on something (parts shortages) that may or may not be true. Their earnings reports keep coming in way above expectations. It doesn't hurt to tamp down expectations to help the overperformance :-)

bonobob 13 Years · 395 comments

pulseimages said:

Hmm…should I buy an 12 Mini now or hope I can buy the 13 Mini in September?

At this point in the cycle, you should not buy a 12 Mini until the new 13's are released. You'll get a better discount.

bonobob said:

pulseimages said:

Hmm…should I buy an 12 Mini now or hope I can buy the 13 Mini in September?

At this point in the cycle, you should not buy a 12 Mini until the new 13's are released. You'll get a better discount.

I think this is the best advice. The only caveat is a combination of parts constraints and huge sales increases of iPhones. Apple just wasn't prepared for the over performance in sales. But if this happens then just wait a month or two. Supply will eventually catch up with demand and discount prices on last year's model should be back.

ArchStanton said:

bonobob said:

pulseimages said:

Hmm…should I buy an 12 Mini now or hope I can buy the 13 Mini in September?

At this point in the cycle, you should not buy a 12 Mini until the new 13's are released. You'll get a better discount.

I think this is the best advice. The only caveat is a combination of parts constraints and huge sales increases of iPhones. Apple just wasn't prepared for the over performance in sales. But if this happens then just wait a month or two. Supply will eventually catch up with demand and discount prices on last year's model should be back.

Will Apple be selling the discounted iPhone 12’s or official resellers?