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Apple Setback: MacBook Supply Problems Anticipated

Ruth

Feb. 18, 2020

KEY POINTS
Industry sources reveal that there will be shortages in MacBook components
The shortage will result to a significantly decreased number of shipments worldwide
Those who want or need a new MacBook should get one now
Those looking to get a new MacBook should get one now because supplies might dry up starting next month, a report claims.
Notebook ODM (Original Design Manufacturing) companies responsible for manufacturing Apple's MacBooks have already resumed operations in China in an attempt to meet the Cupertino tech giant's demands, Digitimes reported.
Apple partner Quanta Computer, a Taiwan-based company responsible for assembling MacBooks, has also recently ramped up production at its new assembly lines in Northern Taiwan, industry sources told Digitimes . The manufacturing company has accelerated the volume of production so that it can meet Cupertino's demands as well.
Despite the ODM companies' efforts in producing new MacBooks, however, they might soon produce less than expected due to a lack of components seen to happen by the end of the month. The shortage in components is largely caused by the Coronavirus that started in Wuhan City in Hubei province, Digitimes noted.
Here's how the coronavirus outbreak affects MacBook production.
Shortage of components
Industry sources revealed that the inventories of many components used on the Apple devices will run out by the end of February. Supporting suppliers supplying ODMs with components are also waiting for the local government to allow them to reopen their plants and resume operations.
Delays in transport
Materials and components that are being transported to the ODMs are also delayed by several factors, including a lack of drivers, strict traffic controls, and a 14-day quarantine applied to cross-provincial shipments.
Manufacturing woes
China-based ODMs are not able to perform at full capacity due to several factors, including low employee returns, a 14-day quarantine for returning workers, and delayed production to the prolonged arrival of low-key components that ODMs don't normally have a lot of.
Slow outbound shipment
Outbound shipments of finished products are also delayed due to the same things that hinder the inbound transport of materials and components: a lack of drivers, strict traffic controls and a 14-day quarantine.
According to Digitimes Research , these factors indicate that the global notebook (laptop) shipments during the first quarter of 2020 can be expected to decrease by 29% to 36%. That said, those who are in need of a new MacBook should get it as soon as possible, Cult of Mac noted.
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