Economics

Apple set to cut iPhone production goals due to chip crunch

Apple is likely to slash its projected iPhone 13 production targets for 2021 by as many as 10 million units as prolonged chip shortages hit its flagship product, Bloomberg reports. people with knowledge of the matter. 

The company had expected to produce 90 million new iPhone models in the last three months of the year, but it’s now telling manufacturing partners that the total will be lower because Broadcom and Texas Instruments are struggling to deliver enough components, Bloomberg quotes people with knowledge of the matter as saying.

The technology giant is one of the world’s largest chip buyers and sets the annual rhythm for the electronics supply chain. But even with strong buying power, Apple is grappling with the same supply disruptions that have wreaked havoc on industries around the world. Major chipmakers have warned that demand will continue to outpace supply throughout next year and potentially beyond.

Apple’s shares dropped on Tuesday following reports. Semiconductor manufacturers Broadcom and Texas Instruments were also down 1%.

In September, Apple launched four new iPhone 13 models: iPhone 13, iPhone 13 mini, iPhone 13 Pro and iPhone 13 Pro Max. Pre-orders started on 17 September and started shipping on 24 September.

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