(Businesshala) – Apple Inc is likely to 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 It added that 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.
But iPhone makers are not untouched by global trends, Counterpoint Research said in a note last month. It cut its global smartphone shipment forecast to 1.41 billion units from an earlier 1.45 billion units, saying Apple was in a better position than some rivals but would still be affected.