Apple to cut iPhone production by 10 million units due to global chip crunch

Apple to cut iPhone production by 10 million units due to global chip crunch

Apple released the iPhone 13 series last month and as always, it sold like hot cakes. However, the global chip crunch is expected to affect the iPhone very soon. As a result, the production is to be cut by nearly 10 million units, according to a report by Bloomberg.

The iPhone 13 brings new features like 120Hz ProMotion display to the ‘Pro’ models and new camera hardware to all the models. On the inside, the iPhone 13 series is powered by the new A15 Bionic chip which continues to push performance beyond extreme levels. Also, the 2021 iPhones are actually slightly thicker and heavier to accommodate larger batteries.

Limited stock availability of the iPhone 13

Apple has reportedly planned to produce 90 million in the last quarter of 2021. But given the issues manufacturing partners like Broadcom Inc. and Texas Instruments Inc. are facing, the production is expected to be cut. The iPhone maker is one of the biggest customers of chip components makers and as a result, it usually gets its orders on priority basis. 

iPhone 13: Improved camera lenses!
iPhone 13: Improved camera lenses!

The global chip crunch is not just limited to the semiconductor chips such as the A-series used in the iPhones or the Intel chips but also other chips such as for wireless, bluetooth, etc. Texas Instruments supplies display parts to Apple whereas Broadcom supplies wireless components. Every component has its own chip and in this case, the display chip that powers the OLED panel on the iPhone is facing a shortage.

The iPhone 13 series is slightly limited in stock as of now as well. Some orders show a delivery date of a month away from the ordering date. Several newly released products show “currently unavailable” for the pick-up option.

Many iPhone orders are expected to ship sometime in mid-November if ordered now. Apple is expected to break the revenue record this quarter. 

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