Apple is said to be confronted with shortages in Power Chips...

Apple Inc. is grappling with a shortage of vital chips that manage power consumption in iPhones and other devices. This could jeopardize its ability to meet vacation demand for the latest version of its marquee gadget.

It is unclear to what extent the bottleneck can limit the availability of the iPhone during the crucial startup quarter, which is usually Apple’s busiest. Despite the deficit, suppliers are likely to prioritize the Cupertino, Calif.-Based Apple and its power-hungry iPhone 12 over other customers lining up for scarce parts, said people who asked not to be identified to discuss private matters.

Trade restrictions and supply chain interruptions caused by Covid-19 are the main causes of the shortage, according to the population. The US is trying to limit sales to Huawei Technologies Co. and the Chinese company have stocked up on additional components. That leaves fewer parts for other buyers, people said. Inventories, which are still troublesome in a global electronics industry, are still recovering from the rolling barriers that messed up transportation routes and cut off workers from factories earlier this year. The disruption is expected to continue over the next two quarters, people said. Read more: Qualcomm sees booming demand for 5G phone chips

Power management is more important on the iPhone 12 than on its predecessors due to additional camera and 5G capabilities, which increases Apple’s need for these components. Four 5G models have recently been launched and analysts expect strong consumer demand for the devices. During a conference call with analysts, Tim Cook, Apple’s chief executive officer, warned of delivery bottlenecks for the iPhone 12, Mac, iPad and some Apple Watch models – although he did not specifically mention power management chips.

Delivery problems for the iPhone are “no surprise” as Apple has just started to ramp up production, said the CEO. “It’s hard to predict,” he added, “how long the supply shortages will last.” An Apple spokesman declined to comment.

According to Apple, Apple has several providers of power management chips A recent demolition of iFixit. The iPhone 12 Pro uses a component of Texas Instruments Inc. to control the power supply of the camera system along with a similar chip from STMicroelectronics NV and one of Qualcomm Inc. for the 5G modem.

There is also a power management part developed 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 iPhone production interruption is due to the question of whether Apple is able to drive demand for its latest gadget in China Worst quarterly revenue trend since 2014. Investors worry the company will face domestic competitors such as Huawei and Xiaomi Corp. in one of its most critical markets.

In the US, a review of the Apple website shows that customers won’t receive new iPhone 12 Pro orders until late November or early December, while the regular iPhone 12 has no delay. Many iPad models show deliveries between mid-November and the end of the month, while some Apple Watch models show delivery times in late November.

– With the assistance of Mark Gurman