Apple May Reduce Iphone Production Amid Continuing Global Chip Shortages, Reports Say

Apple may release 10 million (around 11 percent) fewer new iPhone 13 smartphones than originally planned. In the last three months of 2021, the company had planned to produce 90 million devices.

Apple is being forced to adjust its production targets for the new iPhone 13 due to the continued shortage of computer chips for devices, Bloomberg has reported, citing sources.

According to the report, Apple planned to produce 90 million new iPhone models by the end of the year, but Broadcom and Texas Instruments will not be able to supply the required number of parts. As a result, Apple may have to reduce its iPhone 13 production targets this year by 10 million units.

As noted by Bloomberg, Apple is one of the main buyers of chips in the world, but despite its significant purchasing power, it faces the same problems as other electronics manufacturers. Meanwhile, major chipmakers have warned that demand will continue to outpace supply next year, and possibly even later, according to the agency.

Apple unveiled the new iPhone 13 in September.

Earlier, the media reported an increase in the delivery time of new iPhones due to the outbreak of the coronavirus in Vietnam, where some parts of the devices are assembled.

The ongoing chip crisis was caused by a massive spike in demand for consumer electronics and automotive components amid the ongoing pandemic. After a sudden surge in demand for electronic items like laptops and phones, the shortage of chips increased.

Companies worldwide are already coping with a chip scarcity that has slowed production and forced the closure of entire plants.