Apple likely to cut iPhone 13 production due to chip crisis: report

Apple Inc is likely to reduce the production of its 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 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%.

ALSO READ: Apple iPhone 13 Pro review: lots of little updates put together make one big package

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 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.

ALSO READ: Apple iPhone 13 Review: Certainly More Than Just One More Iteration

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.

(Business Standard staff may have only modified the title and image of this report; the rest of the content is automatically generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and feedback on developments that interest you and that have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our determination and commitment to these ideals. Even during these difficult times arising from Covid-19, we remain committed to keeping you informed and up-to-date with credible news, authoritative opinions, and incisive commentary on relevant current affairs.
However, we have a request.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to bring you more quality content. Our subscription model has received an encouraging response from many of you, who have subscribed to our content online. Increased subscription to our online content can only help us achieve our goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Leave a Comment