(Businesshala) – Apple Inc may cut production of its iPhone 13 by 10 million units due to global chip shortages, Businesshala News reported on Tuesday, citing people familiar with the matter.
According to Businesshala, the company expected to produce 90 million units of the new iPhone model by the end of this year. Report bit.ly/3iUWcQ3 said Apple told its manufacturers the number of units would be reduced as chip suppliers including Broadcom Inc. and Texas Instruments struggled to distribute components.
Apple shares fell 1.2% in after-hours trading, while Texas Instruments and Broadcom were both down about 1%.
Apple declined to comment. Broadcom and Texas Instruments did not immediately respond to Businesshala requests for comment.
In July, Apple forecast slowing revenue growth and said chip shortages, which had begun to kill its ability to sell Macs and iPads, would also curtail iPhone production. Texas Instruments also delivered a softer revenue outlook that month, hinting at chip supply concerns for the rest of the year.
Chip shortages have put immense pressure on industries ranging from automobiles to electronics, forcing many automakers to temporarily suspend production.
With its vast purchasing power and long-term supply agreements with chip vendors, Apple has weathered supply shortfalls better than many other companies, leading some analysts to predict sales of the iPhone 13 model released in September. Would be stronger because consumers wanted to upgrade. Devices for 5G networks.
Jeff Fieldhack, research director at Counterpoint Research, said the reported Apple production cuts may be part of the iPhone maker’s normal launch process, which may be part of the over-ordering process of devices geared toward the early customer crowd. and then trim the order once sales trends become clear.
FieldHack said iPhone 13 sales appear to be healthier and higher than last year’s iPhone 12, and Counterpoint isn’t changing its estimate of 85 million to 90 million iPhone 13 sales for the fourth quarter.