2020 for many companies around the world, has been a bane. The majority of the problems have their roots with the COVID-19 pandemic. The same applies in the case of Apple. However, their problem has been a boon despite the ongoing virus.
Just like the majority of the companies in tech, Apple’s supply chain was also affected because of the temporary factory shutdowns. As a result, their supplies and production went south. Despite this fact, the increased demand for consumer tech wiped out its inventory.
Now, they can’t even keep up with the demand for their productions around the world. In other words, COVID-19 was more of a positive situation for the company.
As mentioned earlier, there is an increase in the demand for Apple products this 2020. Schools around the world have been forced to mutate into hybrid schools where students take their classes at home. The same applies to companies that implement work-from-home setups.
As such, people rushed to buy their own tablets and computers earlier this year. The effect of it was that inventory was depleted. The problem extends to the recently released iPhone 12 and iPhone 12 Pro. Apple CEO Tim Cook uses the word ‘constrained’ in describing the situation where Apple is in right now.
Cook is committed to fulfilling all the deficit supply around the world. He admitted,
“Right now we are supply-constrained, and for avoidance of confusion, we’re constrained on Mac and iPad and some Apple Watches.”
Unfortunately, he added that the challenge is difficult to quantify as a whole. As such, he also admitted,
A fair number of areas of focus right now, and we’re working really, really hard to remedy those as quickly as we can. But at this point, I can’t estimate when we’ll be out of that.
Apple’s problems don’t end with just the consumer tech. They even extend to the issues of supplying accessories for the main category. Currently, Apple can’t even commit its supply of the Single Loop bands until early in 2021.
It remains to be seen how Apple will fix its production issues to ramp up the supply. However, they only have one possible solution to fix this, which is to just double-time on the production. Otherwise, they won’t be able to fulfill all the holiday demands that are expected to flood in.
Image from Apple/ YouTube thumbnail
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