Apple to slash iPhone 13 production amid global chip shortage

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Apple may sell 10 million units less of its new iPhone 13 model due to a global semiconductor shortage.

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The company was expecting to sell 90 million units of its new iPhone by the end of the first year, a report said on Tuesday. bloomberg, citing people familiar with the matter.

The tech giant’s chip suppliers, including Broadcom and Texas Instruments (TI), are struggling to deliver components for the new iPhone, forcing the company to rethink its sales targets.


Apple shares fell 1.6 percent to $139.27 in late trading after the news was published bloomberg. Broadcom and TI shares also declined.

Semiconductor shortages have had a severe impact on many industries, including car manufacturers and electronics, forcing them to reduce production.

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Analysts have said that rising demand and short supply will continue to impact industries in the near future.

While some analysts have said that Apple was better suited to weather the semiconductor shortage, bloomberg The report further sheds light on the electronics maker’s struggles.

Broadcom and TI both rely mostly on sending contracts to chipmakers overseas, such as Taiwan Semiconductor Manufacturing Company (TSMC). While TI makes some chips in-house, Broadcom relies mostly on issuing contracts to chipmakers overseas, including TSMC, according to the report.

Achieving production capacity at TSMC, of ​​which Apple is also a customer, has been difficult due to chip shortages and its long run due to the coronavirus pandemic.

The report also highlights how the gap between ordering and receiving deliveries for semiconductors has widened for the ninth consecutive month. The gap widened to 21.7 weeks in September, the report said, citing data from Susquehanna Financial Group.

Another headache for Apple has been China’s energy crisis, which has prompted its subsidiaries in the country to cut production schedules in line with local government power restrictions.

Apple began selling four new iPhone models in September, but the company won’t ship orders for at least a month.

Quoted by analysts at investment firm Wedbush BBC said that the lack of the chip was “not a concern” as they expected the smartphone to be available in early 2022 and added that it was nothing but a “speed bump”.

“Taking a step back, moving five million to 10 million units in the December quarter to March quarter due to well-understood supply chain issues is not a concern for us and ultimately leads to a stronger demand trajectory than Wall Street.” expects. ,” said analysts Daniel Ives and John Katsingeris.


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