Due to the sharp drop in sales of the MacBook product line, Apple M2 chip discontinued for two months

At the WWDC 2022 developer conference last June, Apple unveiled the latest MacBook Air, featuring a revamped design, an expanded 13.6-inch display, and the next-generation M2 chip. This propelled Mac sales and became a highlight in Apple’s financial report for the fourth quarter of the 2022 fiscal year.

According to The Elec, as MacBook product line sales plummeted, Apple temporarily halted M2 chip production in January and February this year. Although partial production resumed in March, the pace was only half of what it had been. Reportedly, this marks the first time Apple has suspended chip production, which analysts consider significant evidence of severe stagnation in the PC market.

It is understood that Amkor and JCET STATS Chip PAC Korea, responsible for packaging and testing of the M2 chip, received no orders for M2 chip packaging and testing in January and February. As these production lines are specifically tailored for Apple’s chips and cannot be used for others, they were essentially idle. Concurrently, companies within Apple’s supply chain responsible for providing related materials also ceased supply.

In February, Apple announced during its Q1 2023 fiscal year earnings report that the PC market faced an extremely challenging situation. Within that quarter, Apple’s Mac revenue plunged from $10.85 billion in the same period of the previous fiscal year to $7.735 billion, a year-over-year decrease of 28.7%. The decline is expected to continue into the following quarter.

The M2 chip is currently used primarily in the new MacBook Pro, MacBook Air, and Mac mini models, as well as the 2022 iPad Pro.