Bloomberg News reported Tuesday, citing informed sources, that Apple is likely to cut production of its new iPhone 13 by up to ten million devices due to global chip shortages.
Bloomberg said Apple was expected to produce 90 million of its new iPhone models by the end of this year. He added that Apple had told its manufacturers that the number of devices would be reduced because chip suppliers, including Broadcom and Texas Instruments, were having difficulty delivering components.
Shares of Apple fell 1.2 percent in after-hours trading, while shares of Broadcom and Texas Instruments fell about 1 percent.
Apple declined to comment. Broadcom and Texas Instruments did not immediately respond to requests for comment.
In July, Apple had expected revenue growth to slow and said chip shortages, which had started to affect its ability to sell Mac laptops and iPads, would also limit iPhone production. Texas Instruments gave a conservative revenue forecast that month, hinting at chip supply concerns for the rest of the year.
The chip crisis has put enormous pressure on industries, from automotive to electronics, prompting automakers to temporarily suspend production.
With its strong purchasing power and long-standing deals with chip vendors, Apple has been able to avoid a supply shortage better than many other companies, leading top analysts expecting the iPhone 13 models unveiled in September to achieve strong sales as tech enthusiasts are looking to upgrade. your devices with 5G networks.
But Counterpoint Research said in a research note last month that Apple is not immune from the global chip crisis.
It lowered its forecast for global smartphone shipments to 1.41 billion devices from 1.45 billion previously, saying the iPhone maker was in a better position than its competitors, but would be hit nonetheless.
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