As per reports, Apple (AAPL) is seeking to lower its iPhone 13 production targets for 2021 by as many as 10 million units as chip shortages continue to worry the industry. Apple was expecting to produce 90 million new iPhone models in the last three months of the year but, the total will be lower because Broadcom Inc. and Texas Instruments Inc. are struggling to deliver enough components, as per company sources. Even the iPhone giant’s buying power does not seem to help ease out its supply disruptions that have also wreaked havoc on industries globally. Chipmakers warn that the demand will continue to outpace supply throughout next year and potentially beyond.
Apple procures display parts from Texas Instruments (TXN), while Broadcom (BCOM) is the longtime supplier of wireless components. The company is also is facing component shortages from other suppliers. Broadcom relies on contract chipmakers like Taiwan Semiconductor Manufacturing Co. to build its products, as it doesn’t have major factories of its own. Texas Instruments makes some chips in-house, but also relies on outside manufacturing, implying that they’re part of an increasingly challenging fight to secure production capacity at TSMC and other foundries.
The chip shortage is already posing challenges for the technology giant, like its iPhone 13 Pro and iPhone 13 Pro Max went on sale in September, but orders won’t be delivered from the company’s website for about a month. The new devices are listed as “currently unavailable” for pickup at several of the company’s retail stores. Apple, TI representatives declined to comment, and Broadcom refused to comment.
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it. To learn more about Apple (AAPL) and track its ongoing progress at Vista Partners Apple (AAPL), Coverage Page.
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