According to Bloomberg News, Apple is expected to reduce its iPhone 13 by up to 10 million devices due to a global chip shortage. According to Bloomberg, Apple intended to create 90 million copies of the new iPhone models by the end of the year.
According to the source, Apple informed its suppliers that the number of devices would be reduced due to a shortage of chip suppliers such as Broadcom and Texas Instruments. Apple’s stock dropped 1.2 percent in the after-hours trade, while Texas Devices and Broadcom dropped roughly 1%. Apple has been silent about the matter. Reuters reached out to Broadcom and Texas Instruments for comment, but neither company responded right away.
Apple warned in July that sales growth would slow and that a chip scarcity, which had already hampered its capacity to sell Macs and iPads, would also stifle iPhone production. In the same month, Texas Instruments issued a dovish revenue forecast, implying that chip supply issues would persist for the remainder of the year. The chip shortage has put enormous strain on sectors ranging from autos to electronics, prompting several manufacturers to stop production temporarily.
Apple has weathered the supply crunch better than many other companies thanks to its massive purchasing power and long-term supply agreements with chip vendors, leading some analysts to predict that the iPhone 13 models released in September would have a strong sales year as consumers looked to upgrade devices for 5G networks.
However, according to Counterpoint Research, the apple iPhone maker is not immune to global trends. It cut its global smartphone production prediction from 1.45 billion to 1.41 billion, saying Apple was better positioned than other competitors but would be impacted.
