Apple is cutting production of the iPhone 13 due to the chip crisis

The lack of semiconductors and the disruption of the supply chain created an imbalance of supply and demand which led to extended delivery times for the iPhone 13 series. Now, due to a long-running shortage of chips, Apple is reducing production of the iPhone 13 by 10 million units.

Apple originally expected to produce 90 million iPhone 13 units in the last quarter of the year. However, because key vendors such as Broadcom and Texas Instruments are unable to deliver components on time, the company is reducing its production target. While Broadcom supplies Apple wireless chips, Texas Instruments is a supplier of OLED panel-related display parts. Apple is also facing a shortage of components from other vendors.

Apple has redirected several chips and components intended for the iPad Pro to the iPhone 13 product line in an attempt to produce more units ahead of an important holiday season. However, this does not seem to be enough as the chip crisis has worsened further, and delivery times for some are being extended to almost five to six months.

The Apple Store in the U.S. currently lists most iPhone 13 models for delivery only after Christmas, and the products are also not available for download at the store. Apple had already lost about $ 6 billion in revenue in the previous quarter due to the chip crisis, but it looks like things will only get worse for it.

Apple is not the only company struggling with the lack of semiconductors. In fact, it is still doing quite well, and other companies are even more affected. The crisis has also affected carmakers such as Ford, Toyota and Chevrolet, which have had to suspend production at their factories for several days due to shortages.

[Via Bloomberg]

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Naveen Kumar

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