Apple Cuts Production On iPhone 13 Due To Chip Shortage

Apple is expected to reduce production of the iPhone 13 by up to 10 million units due to the worldwide shortage of chips. Citing industry-related sources, the information was revealed by Bloomberg on Tuesday (12).

The company’s original plan was to produce 90 million units by the end of this year. However, the number could be lower because chip providers Broadcom Inc and Texas Instruments would struggle to provide the components.

One of the world’s largest chip buyers, Apple determines the annual pace of the supply chain. But even with its great strength and extensive supplier contracts, the company still struggles with a lack of components.

In July of this year, the shortage would affect the sales capacity of new Macs. The problem could also jeopardize the production of new iPhones and iPads.

The iPhone 13 Pro and iPhone 13 Pro Max, which go on sale in September, will only ship to select customers in the US next month. In addition, many retailers and courier partners report shipping delays.

Strategy adjustment

Because of its purchasing power, Apple has weathered the chip crisis better than its competitors. Analysts had already predicted that the iPhone 13 would have a year of strong sales as many consumers look to upgrade devices to 5G.

According to Counterpoint Research, reducing production can also be a normal launch process after the first batch of customers. Now the manufacturer has to adjust the orders as the sales trends become clearer.

Currently, reports indicate that sales of iPhone 13 will outperform iPhone 12 in 2020. For that reason, the market analyst firm is not changing its estimate that 85 million devices will be sold in the fourth quarter of 2021.

Leave a Comment