Apple cut of Production
14 Oct

Bloomberg is reporting that Apple has significantly cut its production schedule for the iPhone 13 series. Due to ongoing chip shortages, the supply chain is unable to deliver on its original targets for iPhone 13 shipments.

The report says that Apple is now expecting to make 10 million fewer phones in 2021 than originally planned. Apple shares fell 1% in aftermarket trading on the news.

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Notably, Bloomberg says that major Apple suppliers, including Broadcom and Texas Instruments, are unable to deliver the required quantities of components, so Apple has been forced to cut other parts of its manufacturing pipeline as well.

On its last earnings call, Apple warned investors that supply chain production problems could hit iPhone supplies in the current quarter. Earlier this year, Apple said that the limited availability of ‘legacy nodes’ was affecting the production of the iPad and MacBook.

Global chip shortages have been going on for more than a year, sabotaging almost all global companies. The limited availability of silicon has particularly affected the automobile industry, with car production significantly curtailed as manufacturers cannot get their hands on enough chips.

So far, Apple’s massive scale has allowed it to be a top priority for available capacity with suppliers and hasn’t seen any major impact on the iPhone. However, it is not impenetrable and this latest report is an indication that iPhone sales could be damaged by supply chain carnage in the near future.

Apple is set to announce its next earnings report on October 28, where it will tell investors how well the iPhone 13 is performing in the market and offer some insight on the supply situation.

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