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Apple to Cut iPhone Production Goals by as Many as 10 Million Units Due to Chip Shortages
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Ongoing chip shortages faced by the tech industry are affecting production of the iPhone 13 models, according to a new report from Bloomberg.
Apple is expected to cut 2021 iPhone 13 production by as many as 10 million units because of the shortages.
In the final three months of the year, Apple was planning to produce 90 million iPhone 13 models, but Apple's manufacturing partners have been informed that the totals will be lower because Broadcom and Texas Instruments are not able to deliver enough components.
Apple's iPhone 13 supplies are already constrained, and further shortages during the holiday period will push delivery times even further going forward.
According to an iFixit teardown, the iPhone 13 models are 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.
Apple has been dealing with chip shortages for months now, and devices like the MacBook Pro, iPhone 11, iPhone 12, iMac, MacBook Air, iPad Pro, and more have seen longer than normal shipping estimates when purchased from the Apple Store.
Back in September, Apple analyst Ming-Chi Kuo said that Apple would cut its MacBook shipments in half due to component shortages, which perhaps does not bode well for the upcoming MacBook Pro machines that are set to be introduced on October 18. The MacBook shortage is related to a lack of power management integrated circuits, a problem similar to the one that the iPhone models also now appear to be facing.
The continuing chip shortages are expected to last well into 2022, and while Apple is facing supply issues due to the problem, it has been one of the least affected companies in 2021. Other tech companies are also dealing with component shortages, which have been driving prices higher.
Article Link: Apple to Cut iPhone Production Goals by as Many as 10 Million Units Due to Chip Shortages
"according to people with knowledge of the matter" Bloomberg says - but who are these people? 10 Million decrease in production - I wonder if it's true or false?
iPhone 13 minis were available Friday at my Apple store, but only with higher memory. No base models available.
Haven’t you heard about Apple‘s pantry that has $50 billion worth of chips in it.
And the apple fanboys will believe this story. Its clear that the 13 is a marginal (if any) from the iphone 12. Almost everyone I know has been "meh" on the iphone 13. Its one of the worst upgrades apple has done in a long time. They really have done nothing ! They could have at least given us usb c. Timi is now pushing the club a bit too far.
This is fake news from Apple.
Don’t fall for this scaremongering tactics that won’t work; it’s another way for Apple to publicise is Small upgrades. Move on.
Don’t fall for this scaremongering tactics that won’t work; it’s another way for Apple to publicise is Small upgrades. Move on.
You guys crack me up. The world is facing an unprecedented shortage of chips that’s affecting everything with any sort of electronics inside. And here you are interpreting all of that as some conspiracy within Apple to hide low demand.
iPhone 13 is selling great. Bottom line. But, Apple is dealing with the same thing every other industry in the world is dealing with right now.
Lackluster was from 11 series to 12. Nothing changed but squared sides! To me this seems like you reassuring yourself that keeping your old phone is fine 😌😌
from Jul 28 earnings call, transcript link below
Krish Sankar -- Cowen and Company -- Analyst
Got it. Got it. And then just a follow-up for Tim or Luca. I think, Tim, you mentioned in your prepared comments that in September quarter, there's going to be greater impact on supply constraints on the iPhone and iPad.
So I'm kind of curious, this is the first time I heard you talk about component shortages impacting the iPhone. Can you be more specific? Is it display drivers? Or what exactly is the chokepoint on the supply?
Tim Cook -- Chief Executive Officer
The majority of constraints we're seeing are of the variety that I think others are seeing that are -- I would classify as industry shortage. We do have some shortages. In addition to that, where the demand has been so great and so beyond our own expectation that it's difficult to get the entire set of parts within the lead times that we try to get those. And so it's a little bit of that as well.
As I said before, I think probably maybe with the basis of your question, the sort of the latest nodes, which we use in several of our products have not been as much of an issue. The legacy nodes are where the supply constraints have been on silicon.
Apple (AAPL) Q3 2021 Earnings Call Transcript | The Motley Fool
AAPL earnings call for the period ending June 30, 2021.www.fool.com
This is Double-speak.
There's a good overview of what that is on this YouTube video:
DoubleSpeak, How to Lie without Lying
Earliest UK delivery I can see for 13 Pro is 7 November. At least it’s saving me money not ordering…
Probably summer 2022 will be a bit better but demand keeps outstripping production and stock, see new cars as mentioned. Toyota cut production due to a lack of parts and chip shortages, and good luck trying to get the new Xbox or PS5 for Christmas, Sony say things maybe a bit better by I believe this time next year. I've given up trying to buy one, and as for chips in my local shops, lots of empty shelves with things like Milk being in hard supply and Kraft Heinz have said expect food prices to sore all this is global and worrying. https://www.independent.co.uk/news/uk/home-news/food-prices-rising-kraft-heinz-b1935762.html
This is not a conspiracy, this is what happens when the west runs on 'just in time' and for almost a year there was hardly any production of parts, and moving that production to your own country wont help either. As for the iPhone 14 the same issue could well continue and with massive price hikes in the power industries next years phones may be at there most expensive yet, as even Apple cant absorb the cost of fuel prices used to make the the things and the cost of parts will be past on from other comanies they buy, who will be suffering from electricity/Gas /Petrol and Diesel price hikes themselves. I think in many countries this time next year new phones will not be on the must have list for many people tbh. https://www.reuters.com/business/au...ction-target-shortage-chips-parts-2021-09-10/
I’m confused and surprised to see comments like this. The PS5 and Xbox series X have been out almost a year now and its almost impossible to get one. New cars have been in short supply with used ones fetching top dollar due to the chip shortage.
Why do people think apple would be immune to it as well when everyone else has the exact same issue??
That's not what people (like me) keep saying.
Rather, we keep saying that Apple is best positioned to weather the storm, but that doesn't mean Apple's also not going to get wet.
Not everything is black and white.
i’d say the chip shortage is about as real as the supposed “change” shortage .. only lasted a couple weeks .. and somehow businesses refused to accept any 😂