Apple’s stock value fell on Tuesday following reports the company slashed production numbers for its new iPhone 13.
Apple will manufacture 10 million fewer devices than it originally planned, Bloomberg News reported, due to the current global shortage of computer chips.
The expected impact on the company’s operations caused Apple’s share price to drop 1.2% outside of office hours.
It comes like a global semiconductor shortage impacts all industries that need computing power to function, from car manufacturers to game consoles and mobile phones.
Earlier this year, Apple CEO Tim Cook warned the company was using a semiconductor buffer stock to meet demand.
Cook said Apple expects iPad and Mac sales to be $ 3-4 billion lower in the third quarter than they would be without supply issues.
The company launched its new iPhone 13 lineup in September and is expected to host another special event next week, where it is expected to announce new Macs and MacBooks.
The iPhone 13 has a new look, with cameras aligned diagonally on the back and, according to Apple, a 20% smaller notch on the front.
But the launch was muted compared to the events of 2020, when Apple staged three separate launches for a line of products using the company’s own chips.
While these chips aren’t something Apple has to compete with other industries for, the older “legacy node” technology used to manage battery life and other phone parts was a problem. ‘supply.
“The bulk of our problem is with licensing these legacy nodes, there are a lot of different people not only in the same industry, but in other industries using legacy nodes,” Cook explained.