Largest iPhone Supplier Says Chip Shortage to Drag Into Second Half of 2022

Sami Fathi


Major iPhone supplier Foxconn says that it expects the ongoing chip shortage to continue well into the second half of next year, prolonging struggles of manufacturers, including Apple, to keep up with consumer demand, The Wall Street Journal reports.

Apple has been dealing with the chip shortage for the past several quarters, but it only started significantly impacting Apple’s business in the most recent quarter. The shortage of specific components and production constraints related to the ongoing public health crisis have impacted ‌iPhone‌, iPad, Apple Watch, and Mac availability. Apple said that this past quarter, the shortages cost it $6 billion, and it expects the impact to be even more significant for the holiday season.

Foxconn is Apple's largest supplier for the ‌iPhone‌, and while some reports suggest that production is improving, it's still a length away from being entirely normal. As the holiday season approaches, Apple is encouraging customers to get their holiday orders in early to ensure they receive them in time for the holidays, and the company has provided "order by" dates for some of its most popular products.

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