Apple To Cut Down On The Production Of iPhone 13 on Chip Shortages
Apple Inc. is likely to cut down on the production of iPhone 13 targets for 2021 as a result of chip shortages which hit its flagship product, according to people with knowledge of the matter.
Apple’s manufacturing partners are struggling to deliver enough components, forcing the company to scale back targets.
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 Inc. and Texas Instruments Inc. are struggling to deliver enough components, said the people, who asked not to be identified because the situation is private.
The technology giant is one of the world’s largest chip buyers and sets the annual rhythm for the electronics supply chain.
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 gets display parts from Texas Instruments, while Broadcom is its longtime supplier of wireless components. One TI chip in short supply for the latest iPhones is related to powering the OLED display. Apple also is facing component shortages from other suppliers.
Apple and TI representatives declined to comment. Broadcom didn’t respond to a request for comment.