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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.

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.

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.

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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  • 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
Display 6.10-inch
Processor Apple A15 Bionic
Front Camera 12-megapixel
Rear Camera 12-megapixel + 12-megapixel
Storage 128GB
OS iOS 15
Resolution 1170x2532 pixels
  • 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
Display 6.10-inch
Processor Apple A15 Bionic
Front Camera 12-megapixel
Rear Camera 12-megapixel + 12-megapixel + 12-megapixel
Storage 128GB
Battery Capacity 3095mAh
OS iOS 15
Resolution 1170x2523 pixels
  • 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
Display 6.70-inch
Processor Apple A15 Bionic
Front Camera 12-megapixel
Rear Camera 12-megapixel + 12-megapixel + 12-megapixel
Storage 128GB
OS iOS 15
Resolution 1284x2778 pixels
  • 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
Display 5.40-inch
Processor Apple A15 Bionic
Front Camera 12-megapixel
Rear Camera 12-megapixel + 12-megapixel
Storage 128GB
OS iOS 15
Resolution 1080x2340 pixels
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Further reading: iPhone 13, iPhone, Apple, Chip shortage
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