Apple cuts production of iPhone 13, which was released just last month, by more than 10%, as suppliers Broadcom and Texas Instruments can not deliver enough chips to make the phone. The news was released by Debby Wu of Bloomberg, which cited several anonymous sources.
According to Wu, “Apple Inc. is expected to reduce production targets for the iPhone 13 by 2021 by up to 10 million units […] The company expected to produce 90 million new models iPhone the last three months of the year, but now tells construction partners that the total will be lower because Broadcom Inc. and Texas Instruments Inc. have difficulty delivering sufficient parts".
Shares of Apple fell as much as 8% due to late trading, following the release of the report.
Manufacturers of all kinds of products have suffered problems in production this year amid a global crisis in the supply chain, which is expected to last next year.
According to the iPhone 13, Broadcom has four separate chips for the device, including a wireless power receiver, two RF front-end chips and a filter. Texas Instruments, on the other hand, is believed to have three chips for the device, a USB 2.0 repeater chip, and a power management chip for the screen. OLED, a LED flash driver chip and a VCSEL laser guide array chip.