Apple is expected to cut production of its iPhone 13 by up to 10 million units because of the global chip crisis, people familiar with the matter said.
The tech giant is expected to produce 90 million units of the new iPhone models by the end of 2021, according to a Bloomberg report, and Apple has told its manufacturers that the number of units would be lower because chip suppliers such as Broadcom and Texas Instruments are having difficulty supplying components.
The chip shortage has put enormous pressure on the industry, from automobiles to electronics, and has led many automakers to halt production temporarily.
With its huge purchasing power and long-term supply contracts with chipmakers, Apple has weathered the supply crunch better than many other technology companies, leading experts to predict that iPhone 13 models released in September would generate robust sales as consumers upgrade devices for 5G networks.
Counterpoint Research director Jeff Fieldhack said the reported production cut at Apple could also be part of the iPhone maker’s normal launch process, in which devices are over-ordered to prepare for an initial customer rush and then reduced when clearer sales trends become apparent.