Apple has announced plans to cut back its iPhone production goals in 2021 citing shortage of chips, according to reports.
around the world. The news has triggered an immediate 1.2% drop in the company’s share value.
According to reports, the mobile giant expected to produce 90 million iPhone 13 models in the final three months of the current year, but had to reduce the target by as many as 10 million units due to the shortages of vital components.
Apple’s key suppliers, Broadcom and Texas Instruments, are facing challenges in delivering key components used in phones. The iPhone 13 models, launched this fall, are reportedly using a Broadcom AFEM-8215 front-end module and a Broadcom BCM59365 wireless power receiver, along with display power management IC, array driver, flash LED driver, and dual repeater from Texas Instruments.
It added that Apple has instructed other parts of its manufacturing pipeline to cut back as well.
The world has witnessed shortage of semiconductor chips impacting negatively on hundreds of companies, from producers of electronics to automakers and is expected to las till next year or beyond.