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Apple plans to cut iPhone 13 production due to chip crunch: report

MM News Staff by MM News Staff
October 13, 2021
Apple's texting app, Messages, will use machine learning to recognize and warn children and their parents when receiving or sending sexually explicit photos

Apple's texting app, Messages, will use machine learning to recognize and warn children and their parents when receiving or sending sexually explicit photos

LOS ALTOS: Apple Inc (AAPL.O) has planned on slashing the production of its iPhone 13 by as many as 10 million units due to the global chip shortage.

According to Bloomberg News,  the company was expected to produce 90 million units of the new iPhone models by the end of this year. The report said Apple told its manufacturers that the number of units would be lower because chip suppliers including Broadcom Inc (AVGO.O) and Texas Instruments (TXN.O) are struggling to deliver components.

Shares of Apple fell 1.2 percent in after-hours trading, while Texas Instruments and Broadcom were both down about 1 percent. Apple declined to comment.

In July, Apple forecast slowing revenue growth and said the chip shortage, which had started hitting its ability to sell Macs and iPads, would also crimp iPhone production. Texas Instruments also gave a soft revenue outlook that month, hinting on-chip supply concerns for the rest of the year.

With its massive purchasing power and long-term supply agreements with chip vendors, Apple has weathered the supply crunch better than many other companies, leading some analysts to forecast that iPhone 13 models released in September would have a strong sales year as consumers looked to upgrade devices for 5G networks.

As per reports, iPhone 13 sales appear to be healthy and higher than last year’s iPhone 12, and Counterpoint is not changing its estimate of 85 million to 90 million iPhone 13 sales for the fourth quarter.

 

Tags: AppleIPHONE 13mm news
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