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  • Apple is reportedly facing shortages of power chips for the new iPhone 12, people familiar with the matter told Bloomberg.
  • The chip shortages are caused by a higher demand for silicon worldwide and supply chain disruption due to the coronavirus pandemic, the people said.
  • The chips are a vital component for managing power in the new iPhones, which have extra camera features and support 5G.
  • Apple CEO Tim Cook said on October 29 that supply problems for the iPhone are “not a surprise” because Apple had just started to ramp up production, but he did not specifically mention power chips.
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Apple is facing supply problems for iPhone 12 power chips, people with knowledge of the matter told Bloomberg.

In October, Apple launched four new variants of the iPhone 12, which have 5G connectivity and new camera features. These can guzzle power, and the chips in question are a crucial component for managing power in the iPhone.

The main causes of the shortage are an increased demand for silicon worldwide and disruption across supply chains due to the COVID-19 pandemic, according to the people.

Disruptions are expected to continue over the next two quarters, the people said.

In response, Apple has reallocated some iPad components to the iPhone 12 Pro, two people familiar with the matter told Nikkei Asia.

Taiwan Semiconductor Manufacturing Co., which is the main Apple chipmaker, said in October that 5G smartphones require 30% to 40% more chip content compared to 4G devices, per Bloomberg.

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In a conference call with analysts on October 29, Apple CEO Tim Cook spoke about the supply constraints for the iPhone 12, Mac, iPad and some Apple Watch models, but he didn't specifically point towards the power chips.

Cook said that supply problems for the iPhone are "not a surprise" because Apple had just started to increase production. "It's hard to predict" how long the supply constraints will last, he said.

Whilst Apple's website shows rapid delivery for the regular iPhone 12 in the US, the iPhone 12 Pro won't get to customers until late November or early December. A lot of the iPad models will be delivered between mid to late November, and some Apple Watches could also arrive in late November.

Apple did not immediately respond to a request for comment.

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