Apple might not be able to meet the production targets of iPhone 13 for 2021 and will now have to cut output by as many as 10 million units amid chip shortages, according to Bloomberg.
Apple Hit By Chip Shortage
The iPhone maker was planning to manufacture 90 million iPhone 13s before the end of this year, but considering that suppliers Broadcom and Texas Instruments cannot meet chip demand, the tech giant will only produce 80 million.
Last month, the US tech giant has introduced four new iPhone13 models; 2 entry-level models: the 6.1-inch “regular” iPhone 13 model and the smaller 5.4-inch iPhone 13 Mini. For the higher models: iPhone 13 Pro, and iPhone 13 Pro Max.
Unfortunately, the prolonged worldwide semiconductor shortage will persist through 2021 and is expected to recover to normal levels by the second quarter of 2022, according to Gartner, Inc.
Across most categories, device shortages are expected to be pushed out until the second quarter of 2022 (see Figure 1), while substrate capacity constraints could potentially extend to fourth quarter of 2022.