Report: Apple cuts iPhone 13 production by 10 million units, due to ongoing chip shortages

Bloomberg reports that Apple has significantly reduced its production schedule for the iPhone 13 series. Due to the ongoing chip shortage, the supply chain is reportedly unable to deliver its original targets for iPhone 13 shipments.

The report says Apple now expects to make as much as 10 million fewer phones in 2021 than originally planned. Apple shares fell 1% in the aftermarket on the news.

Specifically, Bloomberg says major Apple suppliers, including Broadcom and Texas Instruments, are unable to supply the necessary quantities of components, so Apple has been forced to tell other parts of its manufacturing pipeline to cut back as well.

In its latest earnings call, Apple warned investors that supply chain manufacturing problems could affect the iPhone supply in the current quarter. Earlier this year, Apple said limited availability of ‘older notes’ is affecting iPad and MacBook production.

The global chip shortage has threatened for more than a year and sabotaged almost all global companies. The limited availability of silicon has particularly affected the car industry, where car production has fallen significantly as manufacturers cannot get their fingers in enough chips.

So far, Apple’s large scale has made it possible to remain a top priority for available capacity at vendors and has not seen a major impact on the iPhone. However, it is not impenetrable, and this latest report is a sign that iPhone sales in the short term may be damaged by the supply chain carnage.

Apple is ready to release its next earnings report on October 28, where it will tell investors how well the iPhone 13 is doing in the market and is likely to provide an insight into the supply situation.

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