Apple is likely to slash production of its iPhone 13 models this year by up to 10 million units because of a global shortage of chips.
The company was expected to produce 90 million units of the new iPhone models this year but has told its manufacturers that the number would be lower because chip suppliers including Broadcom and Texas Instruments were struggling to deliver components, the financial information agency Bloomberg reported on Tuesday.
Following the reports, shares of Apple fell 1.2% in after-hours trading, while Texas Instruments and Broadcom were both down about 1%.
The shortages have already weighed on Apple’s ability to ship new models to customers. The iPhone 13 Pro and iPhone 13 Pro Max went on sale in September, but orders won’t be delivered from Apple’s website for about a month. And the new devices are listed as “currently unavailable” for pickup at several of the company’s retail stores.
The Bloomberg said Apple’s woes show that even the king of the tech world isn’t immune from global shortages made worse by the pandemic. In addition to facing tight iPhone availability, the company has struggled to make enough of the Apple Watch Series 7 and other products.
The global chip crunch has put immense pressure on industries from automobiles to electronics, leading many automakers to temporarily suspend production.