Apple Inc. is likely to cut down on the production of the iPhone 13 by as many as 10 million units, why? You may have already guessed it, due to the global chip shortage.
According to Bloomberg News, the company was expected to produce 90 million units of the new iPhone models by the end of 2021. The report added that Apple told its manufacturers that the number of units would be lower because chip suppliers including Broadcom Inc and Texas Instruments are struggling to deliver components.
Apple’s share fell 1.2% in after-hours trading, while Texas Instruments and Broadcom were both down 1%.
Apple did not officially comment, Broadcom and Texas Instruments did not immediately respond either.
In July, Apple forecast slowing revenue growth and said the chip shortage, which had begun hitting its ability to sell Macs and iPads, would also crimp iPhone production.
Texas Instruments also gave a soft revenue outlook that month, hinting at on-chip supply concerns for the rest of the year.
The chip crunch has put immense pressure on industries from automobiles to electronics, leading many automakers to temporarily suspend production.
With its massive purchasing power and long-term supply agreements with chip vendors. Apple has weathered the supply crunch better than many other companies, leading some analysts to forecast that iPhone 13 models that released in September would have a strong sales year as consumers looked to upgrade devices for 5G networks.
But the iPhone maker is not immune to global trends. Counterpoint Research said in a note last month. It lowered its global smartphone shipment forecast to just 1.41 billion units from an earlier 1.45 billion units, stating Apple was better positioned than some rivals but it would still be affected.
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