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Chip shortage hits Apple production ahead of holiday season: report


Apple is unlikely to meet production targets for its new iPhone before the holidays due to the global chip shortage, according to a report on Tuesday.

Apple had planned to produce 90 million iPhone 13s before the end of the year but will likely have to settle for 80 million because suppliers Broadcom and Texas Instruments cannot meet demand, Bloomberg News said, citing sources close to it. of the file who asked to stay. anonymous.

Apple introduced a new line of iPhones last month, with four new models, including the iPhone 13 Mini, which starts at $ 700, and the iPhone 13 Pro Max, which starts at $ 999.

“We believe aggregate demand has been robust globally,” Wedbush analyst Dan Ives said, pointing to strong demand in the United States and China, in particular.

“Apple will face a shortage of more than 5 million iPhone 13 units for the holiday season if consumer demand continues at this rate,” he added.

Apple chief executive Tim Cook warned in quarterly earnings reports at the end of July that supply chain constraints would have an even greater impact on the current quarter than in the previous three months.

He pointed out that microchip shortages affected all parts of the industry, not just Apple.

Bloomberg claims Apple is one of the world’s biggest chip buyers and sets the pace for the electronics supply chain every year. Yet, Bloomberg points out, Apple faces the same supply chain issues that have plagued various industries.

“Major chipmakers have warned that demand will continue to exceed supply throughout next year and potentially beyond,” Bloomberg said.

Apple obtains display parts from Texas Instruments and wireless components from Broadcom, Bloomberg notes.

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