Apple likely to slash iPhone 13 production due to chip crunch: Report
Apple Inc is likely to slash production of
its iPhone 13
by as many as 10 million units due to the global chip shortage, Bloomberg News
reported on Tuesday, citing people familiar with the matter.
The company was expected to produce 90 million units of the new iPhone models by the
end of this year, according to Bloomberg. The report https://bit.ly/3iUWcQ3
said Apple told its manufacturers that the number of units would be lower
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 were both down about 1%.
Apple declined to comment.
Broadcom and Texas Instruments did not immediately respond to
Reuters requests for comment.
In July, Apple forecast slowing revenue growth and said the chip
shortage, which had started hitting its ability to sell Macs and iPads, would
also crimp iPhone production.
Texas Instruments also gave a soft revenue outlook that month, hinting on chip
supply concerns for the rest of the year.
The chip crunch has put immense pressure on industries from
automobiles to electronics, leading many automakers to temporarily suspend
production.
With its massive purchasing power and long-term supply agreements
with chip vendors, Apple has weathered the supply crunch better than many other
companies, leading some analysts to forecast that iPhone 13 models released in
September would have a strong sales year as consumers looked to upgrade devices
for 5G networks.
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