Apple Inc is likely to reduce the production of its iPhone 13 for up to 10 million units due to global chip shortages, Bloomberg News reported Tuesday, citing people familiar with the matter.
The company was expected to produce 90 million units of the new iPhone models later this year, according to Bloomberg. The report added that Apple told its manufacturers that the number of units would be less because chip suppliers, including Broadcom Inc and Texas Instruments, are struggling to deliver components.
Shares of Apple fell 1.2% in after-hours trading, while Texas Instruments and Broadcom fell about 1%.
Apple declined to comment. Broadcom and Texas Instruments did not immediately respond to Reuters requests for comment.
In July, Apple forecast a slowdown in revenue growth and said chip shortages, which had started to affect its ability to sell Macs and iPads, would also affect iPhone production. Texas Instruments also gave a soft revenue outlook that month, hinting at chip supply concerns for the rest of the year.
The chip crisis has put immense pressure on industries, from automotive to electronics, leading many automakers to temporarily suspend production.
With its enormous purchasing power and long-term supply agreements with chip suppliers, Apple has weathered the supply crisis better than many other companies, leading some analysts to forecast that the iPhone 13 models launched in September would have a solid sales year as consumers looked to upgrade. devices for 5G networks.
But the iPhone maker is not immune to global trends, Counterpoint Research said in a note last month. It lowered its forecast for global smartphone shipping to 1.41 billion units from the previous 1.45 billion units, saying that Apple was better positioned than some rivals but would still suffer.
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