Bloomberg reported that Apple expected to produce 90 million iPhones in the last quarter of 2021.
Sources told the business magazine that Apple must now inform its partners that the total will be lowered by up to 10 million units. On the news, Apple shares dropped 1.2% after hours.
According to sources, Broadcom and Texas Instruments have also struggled to deliver enough chips to Apple on time.
The BBC has contacted Apple, Broadcom, and Texas Instruments for comment.
There were four new iPhone 13 models released in September: the iPhone 13, iPhone 13 mini, iPhone 13 Pro, and iPhone 13 Pro Max. Preorders started on 17 September and shipments started on 24 September.
Chip shortages are widespread
Today, computer chips are used to power millions of products across multiple industries, and semiconductor manufacturers are working flat-out to meet demand.
Among the most severely impacted sectors are not only smartphone makers like Apple, but also the automobile industry and manufacturers of video game consoles.
CEO Tim Cook warned investors in July that a shortage of semiconductors could negatively impact sales of the iPhone and iPad.
Based on Apple’s projected iPhone 13 shipment rates for the rest of the year, Wedbush estimates the company will run out of iPhone 13 units by the holiday season.
According to Wedbush analysts John Katsingris and Daniel Ives, the chip shortage was not a concern, as they expect smartphones to be available in the early part of 2022.
Taking a step back, 5 million to 10 million units moving into the March quarter is not a cause for concern and ultimately points to a stronger demand environment than Wall Street has projected, the analysts said.
Today’s news represents merely a speed bump in a multi-year supercycle iPhone 12/13 that continues to play out.”
Several analysts agree with them, forecasting that the new iPhone 13 models will have a strong sales year as consumers upgrade to 5G devices.