Apple may cut production of 10 million iPhone 13 units because of chip shortages

Apple is likely to cut iPhone 13 production this year by up to 10 million units because of chip shortages amid a troubled global supply chain.

Apple's iPhone 13 production is said to be affected by the global chip shortage. Photo: Reuters
Apple's iPhone 13 production is said to be affected by the global chip shortage. Photo: Reuters

According to the Guardian (UK), Apple is expected to produce 90 million new iPhones in the last 3 months of this year. However, the company has told its manufacturers that this number will be lower than planned because chip suppliers, including Broadcom Company and Texas Instruments, are having difficulty supplying components. .

Apple's stock price fell 1.2 percent to $139.27 in late trading after Bloomberg reported the news. Shares of Texas Instruments and Broadcom also fell about 1%. This reflected broad-based declines in stock markets in both the US and Asia, on fears that the lingering impact of COVID-19 and supply-chain problems would cause rampant inflation and discouragement. become growth.

In July, Apple forecast slowing revenue growth. They said chip shortages - which have already begun to affect the ability to sell Macs and iPads - will also reduce iPhone production. Texas Instruments also gave a low revenue outlook for that month, hinting at concerns about chip supply in the final months of the year.

Apple declined to comment on the latest Bloomberg news. Broadcom and Texas Instruments also did not respond to requests for comment.

These are the latest signs of severe bottlenecks affecting global trade flows. The tumultuous economic recovery from the COVID-19 pandemic has caused shortages in energy, components, finished goods, labor and freight.

Along with technology companies, automakers have also been hit hard by the chip crisis, especially semiconductors. Many car manufacturers have had to suspend production due to a lack of components.

With great purchasing power and long-term supply agreements with chip suppliers, Apple has overcome the shortage of supply better than many other companies in recent times. This led some analysts to make positive forecasts about the iPhone 13 models, which were just launched in September this year. However, Apple can't completely avoid global trends, according to analytics firm Counterpoint Research.

The White House is trying to undo the supply bottlenecks that are congested in America's ports, highways and railroads. They also warn that people may have to pay higher prices and have no product on store shelves this Christmas season.

"There will be things that people can't afford," a senior White House official said when asked about holiday shopping. American consumers, who aren't used to finding goods that aren't available, may need to be flexible and patient, White House officials warned on Tuesday.

Energy shortages and soaring electricity prices have led to factory closures in major Asian manufacturing hubs such as China and South Korea in recent weeks, along with severe delays. important in the entire global logistics system.

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