Apple is being forced to cut iPhone 13 orders by as many as 10 million units due to ongoing chip shortages, according to a new report. Cupertino had planned to produce 90 million handsets before the end of the year.
It is now telling partners that the final figure will be lower as partners Broadcom and Texas Instruments — which supply parts related to iPhone’s wireless connectivity and display — struggle to deliver enough components.
iPhone 13 hit by chip supply problems
Apple has mostly avoided the ongoing chip shortage, largely thanks to it being one of the world’s biggest chip buyers, which gives it plenty of power in the market. But just weeks after iPhone 13 made its debut, the story has changed.
The company is now running into the same supply problems others have faced, according to a Bloomberg report, citing sources with knowledge of the matter. It has been forced to cut iPhone 13 orders as a result.
It is believed iPhone 13 shipments are now likely to be around 80 million units — down from 90 million units — between now and the end of the year. And chipmakers have warned that the problem will continue throughout next year.
While supply of Apple’s custom A15 Bionic chipsets, which power the entire iPhone 13 lineup, seems steady, the company is facing difficulty obtaining display and wireless components from Broadcom and Texas Instruments.
iPhone 13 deliveries still delayed
Component shortages have already caused lengthy delays for iPhone 13 customers, the report adds. Those who order a new handset today face shipping waits of up to a month, while in-store pickup is “currently unavailable.”
Despite this, the final quarter of 2021 is expected to be Apple’s most successful to date, with the company predicted to generate revenues of around $120 billion. That would be an increase of 7% over the same quarter last year.