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Power Chip Shortage Could Dent Apple iPhone 12 Holiday Sales

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A shortage of chips used in Apple's  (AAPL) - Get Apple Inc. Report new power-hungry 5G-enabled iPhone 12s and other products could mean fewer newer iPhones available ahead of the holiday shopping season.

Apple reportedly is struggling to obtain chips that control how power is consumed on its new roster of iPhone 12s, raising the specter of a potential shortage of the in-demand 5G-enabled devices.

Increasing demand for silicon across a range of products as well as supply-chain disruptions resulting from Covid-19 are the main causes behind the shortage, according to Bloomberg.

Stockpiling of components in the wake of this year’s virus-led lockdowns was further exacerbating supply chain issues, not just for Apple but for other smartphone makers including Huawei, which also stocked up ahead of a September sanctions deadline though Huawei reportedly has been looking at building its own chip plant.

Despite the shortfall, Apple suppliers like Taiwan Semiconductor Manufacturing are likely to prioritize Apple's backorder and its power-hungry iPhone 12 over other customers lining up for parts, Bloomberg said.

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