Apple might reduce iPhone 13 production by 10 million units due to global chip shortage

The concurrent global chip shortage has started to impact Apple as well. Bloomberg reports that the Cupertino tech giant might cut iPhone 13 production by 10 million due to components shortage faced by its suppliers.

Apple - iPhone 13

At the Q3, 2021 earnings call, the tech giant’s CFO Luca Maestri said that they expect lower growth in the upcoming September quarter than the June quarter with $81.4 billion revenue because of the adverse impact of supply chain constraints on iPhone and iPad sales. CEO Tim Cook added that the company does not only face supply-related shortages, higher than expected demand also causes supply chain issues. Early reports have shown high iPhone 13 demand in China, UK, and other markets.

Apple’s suppliers are unable to deliver display and wireless components for iPhone 13 models

Apple’s manufacturing partners Broadcom Inc and Texas Instruments Inc are struggling to meet demand, therefore, the iPhone maker has reduced its 90 million production units estimate to 80 million units in the last three months of 2021. The report states:

Apple gets display parts from Texas Instruments, while Broadcom is its longtime supplier of wireless components. One TI chip in short supply for the latest iPhones is related to powering the OLED display. Apple also is facing component shortages from other suppliers.

apple- iPhone 13

The prevailing chip crisis and COVID-19 pandemic are responsible for supply chain disruptions which have been devastating for major industries in the world and Apple’s rival Android manufacturer. Earlier it was reported that everyone else besides Apple was affected by the current silicon shortage but now the situation seems to be changing for the world’s leading $2.5 trillion tech company.

Apple shares slipped as much as 1.6% to $139.27 in late trading after Bloomberg reported on the news. The stock was up 6.6% this year through Tuesday’s close. Broadcom and TI also dipped in after-hours trading.

The tech giant will publish its Q4 2021 earnings report on Thursday, October 28, 2021, which will be followed by a conference. The report and earnings call will give a more vivid picture of the impact of supply chain constraints on the company’s revenues.

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Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.

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