California, Oct. 13 (U.S.): Apple is likely to cut production of the iPhone 13 by as much as 10 million units due to a global chip shortage, Bloomberg News reported Tuesday, citing people familiar with the matter.
The company was expected to produce 90 million units of new iPhone models by the end of this year, according to Bloomberg. The report said Apple had told its manufacturers that the number of units would be lower as chip suppliers including Broadcom Inc and Texas Instruments struggled to deliver components, according to Reuters.
Apple shares fell 1.2% in after-hours trading, while Texas Instruments and Broadcom each fell about 1%.
Apple declined to comment. Broadcom and Texas Instruments did not immediately respond to Reuters requests for comment.
In July, Apple predicted slower revenue growth and said chip shortages, which had begun to hurt its ability to sell Macs and iPads, would also hamper iPhone production. Texas Instruments also gave a weak revenue forecast that month, hinting at concerns about chip supply for the rest of the year.
The chip crisis has put enormous pressure on industries from automobiles to electronics, leading many automakers to temporarily suspend production.
With its massive buying power and long-term supply agreements with chip vendors, Apple has weathered the supply crunch better than many other companies, leading some analysts to predict that the iPhone 13 models released in September will enjoy solid sales as consumers look to upgrade. . Devices for 5G networks.
The reported Apple production cuts could also be part of the iPhone maker’s regular launch of over-demand for hardware to prepare for an initial rush of customers and then shrink orders when sales trends become clearer, said Jeff Feldhak, research director at Counterpoint Research.
Fieldhack said iPhone 13 sales look healthy and higher than last year’s iPhone 12, and Counterpoint doesn’t change its estimate from 85 million to 90 million iPhone 13 sales for the fourth quarter.
HF