10 million fewer new iPhones! Apple could shut down production

Even industrial giants like Apple are not spared from the global semiconductor crisis. Having already delayed the production of iMacs and iPads in 2021, the iPhone 13 could be the next to be hit.

We continue to be in the midst of a global chip shortage that is affecting not only automakers, but also the computer and smartphone industries. If a recent “Bloomberg” report is to be believed, Apple may now fail to meet its 2021 iPhone 13 production targets.

Utilities unable to deliver parts

According to the report, production of 90 million iPhones is to be cut by eleven percent – 10 million units. The reason for this is bottlenecks at suppliers Broadcom and Texas Instruments. Broadcom supplies Apple with wireless technology such as Wifi and Bluetooth, while Texas Instruments provides integrated circuits for charging and battery management as well as the display and USB. This information comes from people with private contacts with the companies.

In contrast, industry analyst site DigiTimes reports that “component suppliers for Apple’s new iPhone have seen no reduction in orders so far this year.” The analysts thus explicitly contradict the “media report suggesting Apple could cut planned iPhone 13 production targets for 2021 by up to 10 million units.” So it is unclear so far whether the “Bloomberg” report will prove to be true. It is quite possible that Apple is currently still looking for ways to maintain production – and is only actually cutting it as a last resort.

At least there don’t seem to be any supply problems at the manufacturer of the iPhone 13 core. Taiwanese silicon chipmaker TSMC produces the Apple A15 Bionic, a so-called “system on a chip” (SoC) that integrates the memory controller, image signal processor and neural engine in addition to the CPU and GPU.

Lower iPhone production could impact supply

Already, some of the new iPhone 13 models are difficult to get. Orders from Apple itself often have delivery times of more than a month. The smartphones are also unavailable in many Apple Stores. The reduction in production could further limit supply in the coming months.

Apple CEO Tim Cook had already warned in the middle of the year that there could be delivery problems, as “Wall Street Journal ” reported. Already for the iPad presented in Q2 2021, similar problems were expected. However, Apple was able to avoid major bottlenecks through good relationships with suppliers.

According to a current “Bloomberg” report, Apple will now not be able to reach its targets for the production of the iPhone 13 in 2021.

Sources

  • Bloomberg
  • DigiTimes
  • Wall Street Journal