Apple may cut production of iPhone 13 due to chip shortage

US tech giant Apple Inc. may decide to reduce the production of its iPhone 13 by as many as 10 million units amid the chip shortage hounding different sectors.

The new Apple iPhone 13 Pro and iPhone 13 Pro Max

Chip shortage hits Apple's smartphone production

Based on Bloomberg News, citing sources familiar with the issue, Apple was expected to manufacture 90 million units of the new iPhone models by the end of 2021.

However, the target was lower as its chip suppliers, including Broadcom Inc and Texas Instruments, continue to face challenges in delivering components.

Apple did not release a statement when sought.

In July, Apple already projected weaker revenue growth as the chip shortage has been weighing down its capacity to produce Macs and iPads, and now its smartphone segment.

Earlier this year, Intel chief executive officer Pal Gelsinger said the issue could run for at least two years.

However, the executive said the world may suffer much longer as the coronavirus pandemic forced countries to implement remote working and distance learning, resulting in a "cycle of explosive growth in semiconductors", straining global supply chains.

But while the industry has taken steps to address near-term constraints it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates and components, Gelsinger said during a virtual session of the Computex Trade Show in Taipei.

Via: Inquirer