iPhone 13 Production Likely to Be Cut by as Many as 10 Million Units Due to Chip Crunch: Report

In July, Apple forecast slowing revenue growth and said the chip shortage would also crimp iPhone production.

By Reuters | Updated: 13 October 2021 09:30 IST

iPhone 13 Production Likely to Be Cut by as Many as 10 Million Units Due to Chip Crunch: Report

iPhone 13 sales appear to be healthy and higher than last year's iPhone 12

Highlights

Shares of Apple fell 1.2 percent in after-hours trading
The chip crunch has put immense pressure on industries
Apple has weathered the supply crunch better than many other companies

Apple is likely to slash production of its iPhone 13 by as many as 10 million units due to the global chip shortage, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The company was expected to produce 90 million units of the new iPhone models by the end of this year, according to Bloomberg. The report said Apple told its manufacturers that the number of units would be lower because chip suppliers including Broadcom and Texas Instruments are struggling to deliver components.

Shares of Apple fell 1.2 percent in after-hours trading, while Texas Instruments and Broadcom were both down about 1 percent.

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Apple declined to comment. Broadcom and Texas Instruments did not immediately respond to Reuters requests for comment.

In July, Apple forecast slowing revenue growth and said the chip shortage, which had started hitting its ability to sell Macbook devices and iPad models, would also crimp iPhone production. Texas Instruments also gave a soft revenue outlook that month, hinting on chip supply concerns for the rest of the year.

The chip crunch has put immense pressure on industries from automobiles to electronics, leading many automakers to temporarily suspend production.

iPhone 13 Pro and iPhone 13 Pro Max Review

With its massive purchasing power and long-term supply agreements with chip vendors, Apple has weathered the supply crunch better than many other companies, leading some analysts to forecast that iPhone 13 models released in September would have a strong sales year as consumers looked to upgrade devices for 5G networks.

Jeff Fieldhack, research director for Counterpoint Research, said the reported Apple production cut could also be part of the iPhone maker's normal launch process of over-ordering devices to be prepared for an initial customer rush and then trimming orders as sales trends become clearer.

Fieldhack said iPhone 13 sales appear to be healthy and higher than last year's iPhone 12, and Counterpoint is not changing its estimate of 85 million to 90 million iPhone 13 sales for the fourth quarter.

© Thomson Reuters 2021

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iPhone 13

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Great performance
Versatile cameras
Sharp, bright display
Good battery life

Bad
Standard display refresh rate, intrusive notch
Expensive

Read detailed Apple iPhone 13 review

Display 6.10-inch

Processor Apple A15 Bionic

Front Camera 12-megapixel

Rear Camera 12-megapixel + 12-megapixel

Storage 128GB, 256GB, 512GB

OS iOS 15

Resolution 1170x2532 pixels

More Apple mobiles Apple mobiles price in India

iPhone 13 Pro

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Bright, crisp 120Hz display
Excellent construction quality
Good battery life
Great overall performance
Versatile cameras

Bad
Extremely expensive
Bulky and heavy
Display notch in 2021

Read detailed Apple iPhone 13 Pro review

Display 6.10-inch

Processor Apple A15 Bionic

Front Camera 12-megapixel

Rear Camera 12-megapixel + 12-megapixel + 12-megapixel

Storage 128GB, 256GB, 512GB, 1TB

Battery Capacity 3095mAh

OS iOS 15

Resolution 1170x2523 pixels

More Apple mobiles Apple mobiles price in India

iPhone 13 Pro Max

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Bright, crisp 120Hz display
Excellent construction quality
Stellar battery life
Great overall performance
Versatile cameras

Bad
Extremely expensive
Bulky and heavy
Display notch in 2021

Read detailed Apple iPhone 13 Pro Max review

Display 6.70-inch

Processor Apple A15 Bionic

Front Camera 12-megapixel

Rear Camera 12-megapixel + 12-megapixel + 12-megapixel

Storage 128GB, 256GB, 512GB, 1TB

OS iOS 15

Resolution 1284x2778 pixels

More Apple mobiles Apple mobiles price in India

iPhone 13 mini

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Great performance
Versatile cameras
Sharp, bright display
Very portable and convenient

Bad
Standard display refresh rate, intrusive notch
Expensive
Average battery life

Read detailed Apple iPhone 13 mini review

Display 5.40-inch

Processor Apple A15 Bionic

Front Camera 12-megapixel

Rear Camera 12-megapixel + 12-megapixel

Storage 128GB, 256GB, 512GB

OS iOS 15

Resolution 1080x2340 pixels

More Apple mobiles Apple mobiles price in India

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