Apple Faces Shortages in Power Chips for iPhone 12, , on November 5, 2020 at 1:32 am

By ILP
On 11/05/2020
In Financial News
Tags:

(Bloomberg) — Apple Inc. is grappling with a shortage of vital chips that manage power consumption in iPhones and other devices, people with knowledge of the matter said, potentially threatening its ability to meet holiday demand for the latest version of its marquee gadget.It’s unclear to what extent the bottleneck may limit iPhone availability during its crucial launch quarter, typically Apple’s busiest. Despite the shortfall, suppliers are likely to prioritize Cupertino, California-based Apple and its power-hungry iPhone 12 over other customers lining up for scarce parts, said the people, who asked not to be identified discussing private matters.Trade restrictions and supply-chain disruptions from Covid-19 are the main causes of the shortage, according to the people. The U.S. is trying to limit sales to Huawei Technologies Co. and the Chinese company has stocked up on extra components. That’s left fewer parts for other buyers, the people said. The stockpiling compounds lingering issues across a global electronics industry still recovering from rolling lockdowns that snarled transport routes and cut off workers from factories earlier this year. Disruptions are expected to persist over the next two quarters, the people said.Read more: Qualcomm Sees Booming Demand for 5G Phone ChipsPower management is more important in the iPhone 12 than for its predecessors given additional camera features and 5G capabilities, increasing Apple’s need for these components. It recently launched four 5G models and analysts expect strong consumer demand for the devices. During a recent conference call with analysts, Apple Chief Executive Officer Tim Cook warned about supply constraints for the iPhone 12, Mac, iPad and some Apple Watch models — although he didn’t specifically mention power-management chips.Supply issues for the iPhone are “not a surprise” because Apple has just begun to ramp up production, the CEO said. “It’s hard to predict” how long the supply constraints will last, he added. An Apple spokesman declined to comment.Apple has multiple power-management chip suppliers, according to a recent teardown from iFixit. The iPhone 12 Pro uses a component from Texas Instruments Inc. to control power to the camera system, along with a similar chip from STMicroelectronics NV and one from Qualcomm Inc. for the 5G modem.There’s also a power-management part designed by Apple in this handset. In 2018, Apple acquired technology and other assets from Dialog Semiconductor Plc for $600 million to build its own power-management chips.The disruption to iPhone production comes amid questions over Apple’s ability to galvanize demand for its newest gadget in China, following its worst quarterly revenue performance there since 2014. Investors are concerned the company is losing momentum to homegrown rivals like Huawei and Xiaomi Corp. in one of its most critical markets.In the U.S., a check of Apple’s website shows that new iPhone 12 Pro orders won’t arrive to customers until the end of November or early December, while the regular iPhone 12 isn’t showing any delay. Many iPad models are showing deliveries between mid-November and the end of the month, while some Apple Watch models are showing delivery times in late November.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.,

Apple Faces Shortages in Power Chips for iPhone 12(Bloomberg) — Apple Inc. is grappling with a shortage of vital chips that manage power consumption in iPhones and other devices, people with knowledge of the matter said, potentially threatening its ability to meet holiday demand for the latest version of its marquee gadget.It’s unclear to what extent the bottleneck may limit iPhone availability during its crucial launch quarter, typically Apple’s busiest. Despite the shortfall, suppliers are likely to prioritize Cupertino, California-based Apple and its power-hungry iPhone 12 over other customers lining up for scarce parts, said the people, who asked not to be identified discussing private matters.Trade restrictions and supply-chain disruptions from Covid-19 are the main causes of the shortage, according to the people. The U.S. is trying to limit sales to Huawei Technologies Co. and the Chinese company has stocked up on extra components. That’s left fewer parts for other buyers, the people said. The stockpiling compounds lingering issues across a global electronics industry still recovering from rolling lockdowns that snarled transport routes and cut off workers from factories earlier this year. Disruptions are expected to persist over the next two quarters, the people said.Read more: Qualcomm Sees Booming Demand for 5G Phone ChipsPower management is more important in the iPhone 12 than for its predecessors given additional camera features and 5G capabilities, increasing Apple’s need for these components. It recently launched four 5G models and analysts expect strong consumer demand for the devices. During a recent conference call with analysts, Apple Chief Executive Officer Tim Cook warned about supply constraints for the iPhone 12, Mac, iPad and some Apple Watch models — although he didn’t specifically mention power-management chips.Supply issues for the iPhone are “not a surprise” because Apple has just begun to ramp up production, the CEO said. “It’s hard to predict” how long the supply constraints will last, he added. An Apple spokesman declined to comment.Apple has multiple power-management chip suppliers, according to a recent teardown from iFixit. The iPhone 12 Pro uses a component from Texas Instruments Inc. to control power to the camera system, along with a similar chip from STMicroelectronics NV and one from Qualcomm Inc. for the 5G modem.There’s also a power-management part designed by Apple in this handset. In 2018, Apple acquired technology and other assets from Dialog Semiconductor Plc for $600 million to build its own power-management chips.The disruption to iPhone production comes amid questions over Apple’s ability to galvanize demand for its newest gadget in China, following its worst quarterly revenue performance there since 2014. Investors are concerned the company is losing momentum to homegrown rivals like Huawei and Xiaomi Corp. in one of its most critical markets.In the U.S., a check of Apple’s website shows that new iPhone 12 Pro orders won’t arrive to customers until the end of November or early December, while the regular iPhone 12 isn’t showing any delay. Many iPad models are showing deliveries between mid-November and the end of the month, while some Apple Watch models are showing delivery times in late November.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

,

Contact Us

Please use our Instant Quote form to see if you're pre-qualified for a non-recourse stock loan, or if you have any questions or feedback, please email, call or chat with us.

deals@internationalliquiditypartners.com

+44 20 3994 1588

Headquarters: Hunkins Waterfront Plaza, Charlestown, Nevis

Open 24 hours a day / 7 days a week / 365 days a year

 

 

 

Frequently Asked Questions

What Is Securities-Based Lending?
Securities-based lending, or a stock loan, is the practice of using market investments such as stocks, ETF’s, warrants, bonds, or real estate investment trusts as collateral for a loan.
How much money can I get for my securities?
Borrow up to 80% of the value of your pledged investments giving you the capital you need to expand your business, purchase real estate, or tackle a costly project.
What happens if my securities lose value?
With a non-recourse stock loan, you can walk away from your securities at any time and keep the loan money with no negative credit consequences even if the investments lose value.
Is my information safe with ILP?
We pride ourselves on outstanding service and make client confidentiality our top priority. You can always be absolutely certain your information is safe with us.
How long does it take for the disbursement of funds?
Most of the transactions we process take less than 7 days from application to the disbursement of funds giving you cash quickly when you need it most.
What credit score do I need to qualify?
There are no credit checks or personal guarantees necessary with our services. Your pledged securities are the only collateral required for the loan you receive.

Instant Quote

Please fill out your information to see if you are pre-qualified.

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

International Liquidity Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

International Liquidity Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with International Liquidity Partners, LLC’s internal lending policies. International Liquidity Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Nevis Office

Main Street
Hunkins Waterfront Plaza
Charlestown, Nevis

New York Office

Coming Soon!

Follow Us

Market Coverage