Apple Could Cut iPhone 13 Production Due To Chip Shortages
Apple’s iPhone 13 is not safe from the effects of the ongoing global chip shortage. The Cupertino-based electronics firm is likely cutting down on the production of its recently launched flagship product by up to ten million (11%) as demand for components continues to outpace supply.
According to a report from Bloomberg, Apple was initially expected to produce 90 million units of the new iPhone models by the end of this year. But the firm has now told its manufacturer partners that it’s lowering projections because of supply issues with chips from Broadcom and Texas Instruments.
Broadcom is Apple’s supplier of wireless components, while Texas Instruments is for display parts. One Texas Instruments chip that is reportedly in short supply for its new iPhones is related to powering the OLED display. The Verge notes that the two suppliers are also responsible for chips that handle display power management and Face ID’s laser array, among others.
Apple and Texas Instruments declined to comment on the report, while Broadcom has yet to respond.
The ongoing shortage has already hit Apple’s ability to deliver its new products to the hands of its customers. Analysts cited by Barron’s point out that the wait time to buy an iPhone 13 Pro and iPhone 13 Pro Max, the two top-end models of the series, can reach more than four weeks, the longest it has been in at least four years. Meanwhile, for the iPhone 13, wait times could be as long as two to four weeks.
For the most part, Apple has weathered the supply shortages better than its competition, which led to forecasts of strong sales for the iPhone 13. But this report proves that the company, despite its long-term supply agreements with chipmakers, is not immune to global trends, as Counterpoint Research notes.
However, TSMC, Apple’s supplier of its A15 Bionic processors doesn’t seem to be affected by the shortage right now.
Apple recently announced that it’s holding a launch event on Tuesday, 19 October (Singapore time), where it’s expected to unveil new Mac products that will be powered by the M1X processor. TSMC also manufactures the M1 chip. Right now, there’s been no reports yet on whether these products will be affected by the same production issues as the iPhone 13.
Written by Kyle Chua
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