Apple reportedly slashes iPhone 13 production due to chip crisis

iPhone 13
iPhone 13

Shortages of key components has forced Apple to cut production by as much as 10m units

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13 October 2021 | 0

The global chip shortage is starting to impact iPhone 13 production, with Apple reportedly being forced to slash targets for 2021 by as much as 10 million units.

This is due to suppliers Broadcom and Texas Instruments being unable to deliver enough components for the flagship smartphone series, people familiar with the matter told Bloomberg.

As a result, Apple is reportedly being forced to revise its plans of producing 90 million iPhone 13 models in the final quarter of the year, with the company now aiming for an estimated 80 million instead. This could impact Apple’s sales for Q4, which is usually the busiest period for consumer orders.

 

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The delayed parts in question are reportedly wireless components from Broadcom as well as a Texas Instruments chip responsible for powering the iPhone 13’s OLED display, although reports suggest that Apple is facing component shortages from other suppliers as well.

Shares of Apple fell 1.2% in after-hours trading following the publication of Bloomberg’s report, while Texas Instruments and Broadcom were both down around 1%.

News of iPhone 13 production being crippled by the chip crisis comes 12 months after Apple was hit by power chip shortages for last year’s iPhone 12. The shortfall was blamed on an increase in demand for silicon, as well as supply chain issues related to the spread of coronavirus. However, this didn’t prevent the company from generating a record-high $64.7 billion revenue in Q4 2020.

The global chip shortage, which has been plaguing the tech and automotive industries since the start of the pandemic, has prompted Apple to join a growing number of companies in equipping its devices with its own custom processors in order to rely less on other companies. In April, the tech giant unveiled the M1 chip, its in-house processor for Mac computers, and it’s expected to show off its second-generation ARM-based processor next week.

© Dennis Publishing


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