Apple cuts iPhone production due to chip shortage, says Bloomberg

Apple cuts iPhone production due to chip shortage, says Bloomberg

Apple is cutting production of its iPhone 13, released last month, by over 10% because suppliers Broadcom and Texas Instruments can’t deliver enough chips for the phone, according to a report today by Bloomberg’s Debby Wu, citing multiple unnamed sources. 

Wrote Wu, “Apple Inc. is likely to slash its projected iPhone 13 production targets for 2021 by as many as 10 million units […] The company had expected to produce 90 million new iPhone models in the last three months of the year, but it’s now telling manufacturing partners that the total will be lower because Broadcom Inc. and Texas Instruments Inc. are struggling to deliver enough components.” 

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Image: Apple

Shares of Apple fell as much as 8% in late trading following the report. 

Manufacturers of all sorts of products have suffered setbacks in production this year amidst a global supply chain crunch which is expected to last into next year. 

According to iFixit’s teardown of the iPhone 13, Broadcom has four separate chips in the device, including a wireless power receiver, two front-send RF chips, and a filter of some sort. Texas Instruments is believed to have three chips, a USB 2.0 repeater chip, a power management chip for the OLED display, an LED flash driver chip, and a VCSEL laser driver array chip.

Also: iPhone 13 review: Good enough to be the best

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