October 27, 2021

Apple will reduce iPhone 13 production in 2021 due to lack of chips

California – Apple to reduce production iPhone 13 In 2021, it’s estimated at 10 million units, due to a prolonged shortage of chips, according to people interviewed by Bloomberg. Big Tech is expected to produce 90 million smartphones in the last quarter of the year.

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According to information provided to manufacturing partners, the quantity will be lower due to issues with adequate delivery of components by suppliers Broadcom Inc. and Texas Instruments Inc. , among other distributors.

Apple is one of the world’s largest buyers of chips, often setting the tone for the annual electronics supply chain.

However, despite strong purchasing power, big tech is currently dealing with the same disruptions that have already wreaked havoc in many industrial sectors around the world. Leading chip makers have warned that demand will continue to outpace supply over the next year, and may even reach 2023.

Bloomberg requested, Apple and Texas Instruments declined to comment. Broadcom did not respond to the vehicle request until the report closed.

The general shortage of semiconductors

The shortage of semiconductors has already affected Apple’s ability to ship new models to customers. iPhone 13 Pro and iPhone 13 Pro Max entered the market in September, but orders will not be delivered for another month.

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The time when new devices appear as ‘currently not available’ in some of the company’s retail stores. Apple’s shipping partners are also experiencing similar shipping delays.

Orders are currently scheduled for mid-November, giving the big tech the ability to deliver new iPhones in time for the Christmas season.

The fourth quarter of 2021 is expected to be Apple’s best sales yet, with expected revenue of $120 billion. That’s 7% growth from 2020, and more money the company has made in the year for more than a decade.

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In addition to the difficulty of making the company’s flagship iPhone, Apple is also having problems bringing the Apple Watch Series 7 and other brand products to shelves due to a shortage of semiconductors.

chain reaction

Broadcom distributor, since it has no factories of its own, relies on manufacturing by third-party companies, such as Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC). Although Texas Instruments produces some chips, it also relies on external manufacturing.

Apple is a customer of TSMC, the largest Chinese company. Big tech still relies on the company in the production of A-series processors, which are currently at risk of shortages.

Other factors driving the semiconductor distribution crisis are the protracted power crisis in China, which is another problem for Apple.