Apple 'to slash iPhone production'

Apple is expected to cut down production of the iPhone 13 series by as many as 10 million units due to the global chip shortage, Bloomberg News reports.

The company was expected to produce 90 million units of the new phone models by the end of this year, according to Bloomberg.

The report added that Apple told its manufacturers the number of units would be lower because chip suppliers, including Broadcom and Texas Instruments, are struggling to deliver components.

Shares of Apple fell 1.2 per cent in after-hours trading, while Texas Instruments and Broadcom were both down about one per cent.

Apple declined to comment, while 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 at chip-supply concerns for the rest of the year.

The chip crunch has put immense pressure on industries from automobiles to electronics, leading many car makers 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.

But the iPhone maker is not immune to global trends, Counterpoint Research said in a note last month.

It lowered its global smartphone shipment forecast to 1.41 billion units from an earlier 1.45 billion units, saying Apple was better positioned than some rivals but would still be affected.

Austrlaian Associated PressBack to Breaking News

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