Apple cuts iPhone 13 production targets due to chips
probably lower Apple has set its expected targets for iPhone 13 production for 2021, with up to 10 million units, given the prolonged shortage of chips that hit its flagship product.
The company had expected to produce 90 million new iPhone models in the last three months of the year. But it is now telling manufacturing partners the total could be lower as Broadcom and Texas Instruments struggle to supply enough components.
The tech giant is one of the world’s biggest buyers of chips. It sets the annual rhythm of the electronics supply chain. But even with purchasing power, the company is grappling with the same supply disruptions that have brought down industries around the world.
Major chip makers have warned that demand could continue to outpace supply throughout next year and possibly beyond. Apple gets the display parts from Texas Instruments, while Broadcom is its old supplier of wireless components.
A single Texas Instruments chip, not available on the latest iPhones, is associated with powering the OLED display. Apple is also facing a shortage of components from other suppliers.
The impact of the shortfall in the company’s ability to ship new models to customers. The iPhone 13 Pro and iPhone 13 Pro Max went on sale in September. But orders will not be delivered for about a month.
The new devices are listed as not currently available for pickup from many of the company’s retail stores. The company’s partners are also experiencing similar shipping delays.
Existing orders are scheduled to ship around mid-November. So Apple can still make new iPhones available to consumers in time for the holiday season.
Read also: Settings you need to change on iPhone 13 first
Apple can’t get enough chips
The year-end quarter is expected to be the company’s biggest sales campaign to date. And generates revenues of up to 120 billion dollars. This could be up about 7 percent from the previous year.
In addition to the difficulty of supplying the iPhone 13, the company has struggled to make enough Apple Watch Series 7 and other products.
Separately, the protracted power crisis in China may add to the iPhone maker’s troubles. TPK, an Apple supplier, said subsidiaries in southeast China’s Fujian Province are adjusting their production schedule due to local government power restrictions.
It comes less than two weeks after iPhone assembler Pegatron adopted energy-saving measures amid government-imposed power restrictions.
