Apple likely to slash iPhone 13 production due to chip crunch -Bloomberg News

imageStock Markets16 minutes ago (Oct 12, 2021 06:12PM ET)

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(C) Reuters. FILE PHOTO: IPhone 12 phones are seen at the new Apple Store on Broadway in downtown Los Angeles, California, U.S., June 24, 2021. REUTERS/Lucy Nicholson/File Photo

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(Reuters) -Apple Inc is likely to cut down 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:// added that Apple (NASDAQ:AAPL) told its manufacturers that the number of units would be lower because chip suppliers including Broadcom (NASDAQ:AVGO) Inc and Texas Instruments (NASDAQ:TXN) 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.

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 that some rivals but would still be affected.

Apple likely to slash iPhone 13 production due to chip crunch -Bloomberg News

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