Apple Might Cut Down iPhone 13 Production Because Of Chip Shortage

Bloomberg News said on Tuesday that Apple might cut down production of the iPhone 13 by almost 10 million units. The reason for this is a global chip shortage.

The plan was that Apple would be producing 90 million units of the iPhone models by the end of this year, Bloomberg reported. The report further added that Apple has told its manufacturers that the number of units manufactured will be lesser than the planned numbers. This is because Appleā€™s chip suppliers like Broadcom Inc and Texas Instruments are facing difficulties to deliver components.

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

Neither Apple nor Broadcom and Texas Instruments have commented on Reuter’s request for comment.

Already in July, Apple had forecasted slow revenue growth and it also mentioned the chip shortage due to which there was a difficulty to sell Macs and iPads and it will soon start affecting iPhone production. Even Texas Instruments had given out a soft revenue outlook in the same month which mentioned chip supply concerns for the rest of the year.
Analysts have alerted Apple customers that they might have to wait a little longer to get their hands on the iPhone 13 and it might also be one of the longest waiting times for the phone in recent years.