What you need to know
- Apple is reportedly cutting production of the iPhone 13.
- The company could cut iPhone 13 production by as much as 10 million units this year.
- The issue is due to the ongoing chip shortage.
It looks like Apple may be forced to cut production for the iPhone 13 due to the ongoing chip shortage.
As reported by Bloomberg, the company could decrease iPhone 13 production for 2021 by as many as 10 million units, according to "people familiar with the matter."
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.
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.
iPhone 13 customers are already seeing considerable wait times. The iPhone 13 Pro and iPhone 13 Pro Max, for example, are already experiencing shipment times as far out as mid-November.
The shortages have already weighed on Apple's ability to ship new models to customers. The iPhone 13 Pro and iPhone 13 Pro Max went on sale in September, but orders won't be delivered from Apple's website for about a month. And the new devices are listed as "currently unavailable" for pickup at several of the company's retail stores. Apple's carrier partners are also seeing similar shipment delays.
Current orders are slated to ship around mid-November, so Apple could still get the new iPhones to consumers in time for the crucial holiday season. The year-end quarter is expected to be Apple's biggest sales blitz yet, generating about $120 billion in revenue. That would be up about 7% from a year earlier -- and more money than Apple made in an entire year a decade ago.
Representatives from both Apple and Texas Instruments declined to comment on the report. Broadcom did not respond to Bloomberg's request for comment.
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