Apple likely to cut iPhone 13 production due to chip crunch – Bloomberg News | Inquirer Technology
Close  

Apple likely to cut iPhone 13 production due to chip crunch – Bloomberg News

/ 09:51 PM October 13, 2021
Apple likely to cut iPhone 13 production due to chip crunch – Bloomberg News

FILE PHOTO: An Apple employee wearing a face mask walks past an image of an iPhone 13 Pro at an Apple Store on the day the new Apple iPhone 13 series goes on sale, in Beijing, China, September 24, 2021. REUTERS/Carlos Garcia Rawlins/File Photo

Apple Inc is likely to slash production of its iPhone 13 by as many as 10 million units due to the global chip shortage, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The company was expected to produce 90 million units of the new iPhone models by the end of this year, according to Bloomberg. The report said 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.

ADVERTISEMENT

Shares of Apple fell 1.2% in after-hours trading, while Texas Instruments and Broadcom were both down about 1%.

Apple declined to comment. Broadcom and Texas Instruments did not immediately respond to Reuters requests for comment.

FEATURED STORIES

In July, Apple forecast slowing revenue growth and said the chip shortage, which had started hitting its ability to sell Macs and iPads, would also crimp iPhone production. Texas Instruments also gave a soft revenue outlook that month, hinting about 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 released in September would have a strong sales year as consumers looked to upgrade devices for 5G networks.

Jeff Fieldhack, research director for Counterpoint Research, said the reported Apple production cut could also be part of the iPhone maker’s normal launch process of over-ordering devices to be prepared for an initial customer rush and then trimming orders as sales trends become clearer.

Fieldhack said iPhone 13 sales appear to be healthy and higher than last year’s iPhone 12, and Counterpoint is not changing its estimate of 85 million to 90 million iPhone 13 sales for the fourth quarter.

The latest tech news delivered to your inbox

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
TOPICS: Apple, chip shortage, gadgets, iPhone, technology
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

For feedback, complaints, or inquiries, contact us.

Subscribe to our technology news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2021 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.