Will Chip Shortages Hurt Apple's Holiday?

With all these chip shortages and delivery problems, how is Apple introducing new products?

Apple is finding ways to have chips for their products and get them delivered from Asia. Rice's Trade and International Economics expert David Gantz.: "With Apple my understanding is they make their own [chips] now. If they're charging more than $2,000 a computer, they can afford to eliminate shipping problems by putting them on an air freighter! I wouldn't be surprised a good deal of their transportation is handled by air. This in order to get their product out there by Black Friday and Cyber Monday particularly." Google's coming out with a new smartphone today as is Samsung tomorrow. But - some major IT companies may have to postpone stocking shelves until November. Says Gantz, "There have been work stoppages in factories in Viet Nam and China because of Covid scares. And China has cut down on coal that is needed to run electricity, so some factories have not been able to operate full time."

The semiconductor shortage could take a bite out of Apple, and although but Gantz understands Apple is now making their own, many consumer electronics are built in Asia where covid and power problems may slow down manufacturing. "The experts are saying, 'If you want to buy a computer, an iPhone or a gaming console for the holiday --- do it right now!"

Bangkok, Thailand - September 18, 2018 : Apple iPhone 7 showing its screen with Apple logo when it is being updated the software to iOS 12.

Shop early for Apple products for the holidaysPhoto: Getty Images

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