Game over: why Santa may struggle to bring you that PS5, Xbox or iPad

Some of the most popular Christmas presents are being sold online with mark-ups of more than 70% after selling out in major high street stores because of the global shortage of microchips.

Supply-chain bottlenecks and the computer-chip shortages are affecting availability of some of the most sought-after gifts, from games consoles to Dyson products. Shoppers were warned last week of a delay of at least one month for some of the most popular iPad models.

The Microsoft Xbox Series X, launched in November 2020, typically sells for £449.99 but was sold out or in very limited supply at most retailers last week, including Currys, John Lewis, Argos and Asda. But it was available for sale at the online marketplace onbuy.com for £669.49, a mark-up of almost 50%.

Global sales of microchips will reach almost £400bn this year but production concentrated in east Asia has been significantly disrupted by the pandemic. Meanwhile, demand has continued to grow for computer chips that are required for every sector of the economy, from ventilators used to treat patients with Covid-19 to consumer leisure goods to cars.

Apple was reported by Bloomberg in October to be cutting production targets of its iPhone 13 by 10 million units because of prolonged microchip shortages. The electronics giant has also reportedly cut iPad production to allocate more components to its latest iPhone.

The deadline at the UK Apple store for ordering an iPad mini in time for Christmas was 17 November, and the deadline for an iPad was 24 November. Dispatch times on Amazon last week for a £319 2021 10.2-inch iPad were between one and two months.