Chip shortage hits iPhone 13, and Apple reportedly cuts production

Apple is planning to cut the production target for the iPhone 13 series by as much as ten million units as the ongoing chip crisis hits the company’s suppliers. The global semiconductor crisis has hit industries in all areas, with consumer electronics and automobiles being one of the hardest hit. Even a company with venerable supply chain control like Apple has not been immune to the effects.

It was previously reported that due to labor shortages, Apple’s suppliers in China were struggling to meet demand and exacerbate already strained production lines. COVID-19 proved to be a major hurdle for some time, but even after the effects of the pandemic subsided, the notoriously convoluted semiconductor supply chain continued to give brands a headache.

Apple will likely reduce the production target for the iPhone 13 series by as much as 10 million due to the ongoing chip crisis, according to Bloomberg citing industry sources for the information. The company had initially planned to pull 90 million units of the iPhone 13 quartet off the production line in the last quarter of 2021, but the company has already lowered those estimates. According to the report, the top two suppliers that failed to supply the required amount of components are Broadcom and Texas Instruments.

Broadcom is known for supplying wireless components for Wi-Fi and Bluetooth connectivity to Apple, while Texas Instruments typically supplies display parts as well as battery and camera components. One of the components that Apple is currently facing is related to the OLED panel for the iPhone 13 series. Camera upgrades, such as the use of improved sensors and the use of sensor-shift image stabilization throughout the series, were previously perceived as stressing Apple’s suppliers in Vietnam, causing shipments to be delayed by up to a month. for iPhone 13 buyers.

While Apple appears to be facing component shortages from multiple vendors, the problems associated with Broadcom and Texas Instruments may have finally forced Apple to lower its iPhone 13 production estimates. Apple is expected to generate nearly $120 billion in revenue last year. quarter of 2021, led by strong holiday season sales, according to Bloomberg. However, it is unclear whether the company will be able to recover from the supply hiccups and release adequate stock of the iPhone 13 in time. The hurdles in the supply chain are also the reason behind the late launch of the Apple Watch Series 7.

The iPhone 13 family and Apple Watch Series 7 aren’t the only products facing the heat. An April report mentioned that the company had delayed production of the MacBook and iPad due to missing circuit board components and display parts. Not to mention that supply hurdles also played a role at Apple, which delayed the launch of an iPad Pro with an OLED screen by at least a few years.

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