You might have probably heard but don’t know why Apple was reportedly forced to slash 10 million iPhones. Shortages of key components have forced Apple to cut production by as much as 10 million units.
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.
According to ITPro, 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.
Apple Reportedly Forced To Slash 10 Million iPhones
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.
Current UK delivery dates for the iPhone 13 are estimated between 29 October and 5 November, while those interested in the Pro iteration of the smartphone would have to wait over a month for their order until 19 November.
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. Apple did not immediately respond to IT Pro’s request for comment.
Apple Shares
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%.
The New iPhone
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 (£47.5 billion) revenue in Q4 2020.
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 (£47.5 billion) revenue in Q4 2020.
