Apple reportedly slashes iPhone 13 production due to chip crisis

Shortages of key components has forced Apple to cut production by as much as 10 million units

The global chip shortage is starting to impact iPhone 13 production, with Apple reportedly being forced to slash targets for 2021 by as much as 10 million units.

This is due to suppliers Broadcom and Texas Instruments being unable to deliver enough components for the flagship smartphone series, people familiar with the matter told Bloomberg

As a result, Apple is reportedly being forced to revise its plans of producing 90 million iPhone 13 models in the final quarter of the year, with the company now aiming for an estimated 80 million instead. This could impact Apple’s sales for Q4, which is usually the busiest period for consumer orders. 

Current UK delivery dates for the iPhone 13 are estimated between 29 October and 5 November, while those interested in the Pro iteration of the smartphone would have to wait over a month for their order – until 19 November.

The delayed parts in question are reportedly wireless components from Broadcom as well as a Texas Instruments chip responsible for powering the iPhone 13’s OLED display, although reports suggest that Apple is facing component shortages from other suppliers as well. Apple did not immediately respond to IT Pro's request for comment. 

Shares of Apple fell 1.2% in after-hours trading following the publication of Bloomberg’s report, while Texas Instruments and Broadcom were both down around 1%.

News of iPhone 13 production being crippled by the chip crisis comes 12 months after Apple was hit by power chip shortages for last year's iPhone 12. The shortfall was blamed on an increase in demand for silicon, as well as supply chain issues related to the spread of coronavirus. However, this didn’t prevent the company from generating a record-high $64.7 billion (£47.5 billion) revenue in Q4 2020.

The global chip shortage, which has been plaguing the tech and automotive industries since the start of the pandemic, has prompted Apple to join a growing number of companies in equipping its devices with its own custom processors in order to rely less on other companies. In April, the tech giant unveiled the M1 chip, its in-house processor for Mac computers, and it's expected to show off its second-generation ARM-based processor next week

Featured Resources

How virtual desktop infrastructure enables digital transformation

Challenges and benefits of VDI

Free download

The Okta digital trust index

Exploring the human edge of trust

Free download

Optimising workload placement in your hybrid cloud

Deliver increased IT agility with the cloud

Free Download

Modernise endpoint protection and leave your legacy challenges behind

The risk of keeping your legacy endpoint security tools

Download now

Recommended

Safari bug lets websites track browsing activity and unique identifiers
web browser

Safari bug lets websites track browsing activity and unique identifiers

18 Jan 2022
El Salvador becomes latest target of Pegasus spyware
spyware

El Salvador becomes latest target of Pegasus spyware

13 Jan 2022
Mac shipments grew at twice the pace of PCs in 2021
Hardware

Mac shipments grew at twice the pace of PCs in 2021

13 Jan 2022
Apple becomes world's first $3 trillion company
business management

Apple becomes world's first $3 trillion company

4 Jan 2022

Most Popular

How to move Microsoft's Windows 11 from a hard drive to an SSD
Microsoft Windows

How to move Microsoft's Windows 11 from a hard drive to an SSD

4 Jan 2022
How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

6 Jan 2022
Microsoft Exchange servers break thanks to 'Y2K22' bug
email delivery

Microsoft Exchange servers break thanks to 'Y2K22' bug

4 Jan 2022