Apple, facing chip shortages, will likely cut the projected iPhone 13 production targets for the year by as many as 10 million units, Bloomberg reported.
The company was looking at producing 90 million new iPhone models in the final three months of the year. However, it has been telling manufacturing partners that the total will be lower, as Broadcom and Texas Instruments haven’t been able to deliver the right amount of components, according to the report, which cited unnamed sources.
Apple gets display parts from Texas Instruments. Broadcom, meanwhile, supplies wireless components, the report stated. One of the Texas Instruments chips in short supply helps power the OLED display. There are also other shortages from other suppliers.
The company is one of the biggest chip buyers in the world. Apple routinely sets the pace every year for the whole electronics supply chain, according to the report.
But the company has been affected by the supply chain disruptions that have rippled out of the pandemic, and many chipmakers have said the demand will likely keep outpacing supply throughout the next year and maybe even after that, the report stated.
The shortages have already cut down on the tech giant’s ability to ship new models to customers, and Apple shares fell by around 1.6% Tuesday (Oct. 12), according to the report.
Current orders are set to ship around mid-November, so Apple may still get the new iPhones out in time for the annually crucial holiday season. The year-end quarter is set to be the company’s biggest yet, generating around $120 billion, a 7% boost from 2020 and more money than Apple used to make in a whole year, the report stated.
In other Apple tech news, the company is looking at potentially putting the CarPlay app in more cars until it’s able to launch its own vehicle.
Read more: With the iCar in Limbo, Apple Moves to Put CarPlay Into Driver’s Seat
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