According to Bloomberg News, which cited sources familiar with the situation, Apple is expected to cut manufacturing of its iPhone 13 by up to 10 million devices owing to a global chip shortage. According to Bloomberg, Apple intended to create 90 million copies of the new iPhone models by the end of the year. According to the source, Apple informed its suppliers that the quantity of devices will be reduced due to a shortage of components from chip suppliers such as Broadcom and Texas Instruments.
In after-hours trade, Apple's stock plummeted 1.2 percent, while Texas Instruments and Broadcom both lost nearly 1%.Apple has been silent about the matter. Reuters reached out to Broadcom and Texas Instruments for comment, but neither company responded right away. In July, Apple predicted that sales growth would slow and that a chip shortage, which had already hampered the company's capacity to produce Macbooks and iPad models, would also stifle iPhone manufacturing.
In the same month, Texas Instruments issued a dovish revenue forecast, implying that chip supply issues would persist for the remainder of the year. The chip shortage has put enormous strain on sectors ranging from autos to electronics, prompting several manufacturers to halt production temporarily. Apple has weathered the supply crunch better than many other companies thanks to its massive purchasing power and long-term supply agreements with chip vendors, leading some analysts to predict that the iPhone 13 models released in September would have a strong sales year as consumers looked to upgrade devices for 5G networks.
The alleged Apple manufacturing decrease might potentially be part of the iPhone maker's regular launch procedure of over-ordering devices to brace for an early consumer rush and then cutting orders as sales patterns become apparent, according to Jeff Fieldhack, research director for Counterpoint Research. According to Fieldhack, iPhone 13 sales look to be strong and greater than last year's iPhone 12, and Counterpoint hasn't changed its fourth-quarter projection of 85 million to 90 million iPhone 13 sales.