Apple might decrease iPhones production due to shortages

Apple might reduce the production of the iPhone 13 due to a shortage of computer chips in the middle of the supply chain crisis in the world. It led the White House to advise that some things will be unavailable for purchase for people at Christmas.

This year, Apple was planning to produce around 90m pieces of the new iPhones. However, the company had to inform its manufacturers that the amount would be lower. On Tuesday, Bloomberg reported that chip suppliers such as Texas Instruments and Broadcom struggled to produce components.

On Tuesday, shares in Apple dropped by around 1.2%, following broader falls in Asia and the US stock market, mainly because of concerns that supply chain difficulties and the ongoing impact of Covid will produce widespread inflation.

Shortages

At the beginning of July, Apple estimated reducing revenue growth, saying the chip shortage would also hit iPhone production. These shortages had already affected the company`s ability to sell its Macs and iPads.

Apple decided not to comment on the recent report by Bloomberg, while Texas Instruments and Broadcom also avoided immediate response to demands for comment.

It can be the newest sign of the severe and critical situation affecting the progress of global trade. Also, the economic recovery suffered from the pandemic effects and a shortage of energy, finished goods, components, labor, and transportation.

Besides the fact that technology companies experience a severe shortage in chips, carmakers also have experienced the worst hit by these shortages of semiconductors. It resulted in fewer production in vehicles (estimated 7.7m) this year. Also, many US factories postponed production this year because of a lack of parts. In recent weeks, rising power prices and energy shortages resulted in shutdowns of factories in China and South Korea, increasing critical delays in the entire global logistics system.