Yesterday it was reported that Apple might cut iPhone 13 production by 10 million units due to component shortages faced by its suppliers on account of the ongoing chip shortage. However, suppliers for the Cupertino tech giant have denied this claim in a new report.
Apple suppliers refute recent report claiming iPhone 13 orders have been cutback
Yesterday, Bloomberg reported that Apple’s manufacturing partners Broadcom Inc. and Texas Instruments Inc. are struggling to meet demands, therefore, the iPhone maker has reduced its 90 million production estimate to 80 million units in the last three months of 2021. From the report:
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.
The news caused a drop in the tech giant’s stock leading industry analysts to be concerned about Apple’s ability to keep up with the demand for iPhone 13. This has led to Apple suppliers refuting the claims in the Bloomberg report. A preview of a paywalled DigiTimes report (via MacRumors) states, “component suppliers for Apple’s new iPhones have claimed no cutback in orders thus far this year.” It implies that production for iPhone 13 is on track and the news of cutback is inaccurate.
The iPhone 13 Pro and iPhone 13 Pro Max, for example, continue to list weeks or even as long as a month for delivery dates. The Apple Watch Series 7, going on sale this Friday, is also experiencing delays in shipments, with some high-end models leading into early December. A report last week said that Apple’s suppliers are “scrambling” to keep up with production due to new energy regulations in China impacting efficiency.
The ongoing chip shortage couple with the coronavirus pandemic continues to cause supply chain disruptions which have had devastating outcomes for major industries around the globe. Currently, we do not know which report is accurate in reference to the alleged cutback however it was reported earlier that everyone else besides Apple is affected by the current silicon shortage.
In related news, iPhone 13 Pro and Pro Max are showing delayed delivery dates due to supply chain disruptions in Vietnam. It is expected that shipping time for Apple Watch Series 7 will also be met with delays.