Global chip shortage to hit iPhone 13 production

According to a report published by Bloomberg, Apple is planning to cut down the production of iPhone 13 smartphones by ,10 million units due to the global chip shortage. The company had projected 90 million units for 2021 but was forced to slash down that target due to partners Broadcom Inc. and Texas Instruments Inc. struggling to deliver enough components, the report claims.

Shares at Apple in late trading fell around 1% after the news broke.

Although Apple has refused to comment, the global chip shortage has become a well-known global headache for manufacturers. Substrate shortages, pandemic restrictions and lack of labour has caused many global chip manufacturers to spiral into shortages and has in turn affected the majority of technical manufacturing which has experienced a boom post-pandemic.

In July, Apple forecast slowing revenue growth and said the chip shortage, which had started hitting its ability to sell Macs and iPads, would also crimp iPhone production. Texas Instruments also gave a soft revenue outlook that month, hinting on chip supply concerns for the rest of the year