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- Apple CEO Tim Cook said the chip shortage has caused the company to delay production of the iMac and iPad.
- The global semiconductor shortage has hit automotive and tech companies hard in recent months.
- Cook estimates Apple will lose $3-4 billion in revenue next quarter as a result of the shortage.
- See more stories on Insider’s business page.
Shoppers may see shortages of iMacs and iPads on the shelves in the coming months.
Apple CEO Tim Cook told investors during the company’s quarterly earnings report that Apple has been hit by the computer chip shortage and has been forced to delay production on its iMac and iPad as a result.
While many speculated that Apple would be one of few companies to dodge the chip shortage, Cook confirmed the supply disruption was primarily impacting its “legacy node” chips.
The affected chips employ traditional manufacturing lines used by other automakers and tech companies that are also scrambling to procure semiconductor chips. The computer chips are involved in anything from cars to televisions, gaming systems, and home appliances. Rising demand from the work-from-home boom paired with COVID-19 shutdowns in the supply chain have made the chips an especially valuable commodity.
Cook said Apple was able to avoid any impact from the shortage in the previous quarter. That was mostly due to the fact that the company began producing its own chips last year. On most of its other products, Apple uses high powered computer chips that are not impacted by the shortage.
The CEO did not specify which semiconductor parts were in short supply or when the issue would be resolved.
“Most of our issue is on licensing those legacy nodes, there are many different people not only in the same industry, but across other industries that are using legacy nodes,” Cook said.
Luca Maestri, the company’s chief financial officer, said Apple would take a $3 billion to $4 billion revenue hit as a result of the semiconductor chip shortage.
“It’s a combination of the shortages as well as the very, very high level of demand that we are seeing for both iPad and iMac,” Maestri…