14 DAY TRIAL // Apple launched the iPhone 13 with much fanfare last month, but as Tim Cook warned during the latest earnings call, the company is struggling with a component shortage caused by the global chip crisis.
In other words, some suppliers can’t produce enough components because they don’t have the chips for them, so Apple in its turn has no other option than to reduce the production of the iPhone 13.
Could this affect the global inventory of the iPhone 13 and increase delivery times? This is rather unlikely, especially since the device is already available for same-day delivery in some markets, but on the other hand, it could be a problem for Apple in the short term, as the company may fail to reach its production target this year.
A report from Bloomberg reveals that Broadcom and Texas Instruments are two of the largest suppliers who are unable to meet the Apple orders because of the lack of chips, and the iPhone maker has therefore reduced its production requirements for other suppliers to align the entire chain.
Reduced iPhone 13 production
Apple is therefore to make some 10 million fewer phones this year alone, though the company is expected to accelerate the production early next year when everybody expects the chip shortage to show more substantial signs of recovery.
The lack of chips has wreaked havoc in the majority of industries out there, including the automotive market where companies had no other option than to temporarily shut down their production at several plants. Others, such as General Motors, maintained the production at some factories untouched, but the vehicles it made weren’t fitted with some critical systems, with these cars eventually moved to parking lots waiting for more chips to arrive.
Experts believe the shortage would be partially resolved towards the end of the year, and it could go away fully at some point next year.