Apple to Cut iPhone Production Goals by as Many as 10 Million Units Due to Chip Shortages

[MacRumors]

Ongoing chip shortages faced by the tech industry are affecting production of the iPhone 13 models, according to a new report from Bloomberg.

Apple is expected to cut 2021 iPhone 13 production by as many as 10 million units because of the shortages.

In the final three months of the year, Apple was planning to produce 90 million iPhone 13 models, but Apple's manufacturing partners have been informed that the totals will be lower because Broadcom and Texas Instruments are not able to deliver enough components.

Apple's iPhone 13 supplies are already constrained, and further shortages during the holiday period will push delivery times even further going forward.

According to an iFixit teardown, the iPhone 13 models are using a Broadcom AFEM-8215 front-end module and a Broadcom BCM59365 wireless power receiver, along with display power management IC, array driver, flash LED driver, and dual repeater from Texas Instruments.

Apple has been dealing with chip shortages for months now, and devices like the MacBook Pro, iPhone 11, iPhone 12, iMac, MacBook Air, iPad Pro, and more have seen longer than normal shipping estimates when purchased from the Apple Store.

Back in September, Apple analyst Ming-Chi Kuo said that Apple would cut its MacBook shipments in half due to component shortages, which perhaps does not bode well for the upcoming MacBook Pro machines that are set to be introduced on October 18. The MacBook shortage is related to a lack of power management integrated circuits, a problem similar to the one that the iPhone models also now appear to be facing.

The continuing chip shortages are expected to last well into 2022, and while Apple is facing supply issues due to the problem, it has been one of the least affected companies in 2021. Other tech companies are also dealing with component shortages, which have been driving prices higher.

Article Link: Apple to Cut iPhone Production Goals by as Many as 10 Million Units Due to Chip Shortages

 

[jz0309]

not surprising ... Apple is not immune to the supply chain shortages that go way beyond chips ... and, Cook said so himself on the last earnings call ...
Edit: Cook's statement added to #20

 

[siddavis]

But but but people keep saying that Apple should just get the chips from their fantasy super parts warehouse.

 

[dantracht]

Not helping me device whether I want to retire my 11pm or not. Maybe I should just keep it until the fall and trade it in for the 14?

 

[I7guy]

Crazy, when a used car is fetching new car prices because of this. Will be interesting to see the earnings call.

 

[TheYayAreaLiving 🎗️]

Ouch! No wonder it was delayed

 

[Freeangel1]

Too bad. more reason to blow this model off and wait for the 14.

concentrate on those new MacBook Pro's .

Your gonna need it with Windows 11 all finished up and people buying a New PC to run it with TPM 2.0

A recession is coming. don't take my word for it.

The evolution of Apple's iPhone

As the iPhone ages, let's look at how the now-iconic device has matured since its arrival in 2007.

www.computerworld.com

 

[xxray]

I’m glad I got my 13 Pro when I did.

 

[winxmac]

So the chips that are already in their possession not enough? Or they still have not received the total number of chips they purchased and is still being manufactured?

I don't get it. When you cook something, you should have all the ingredients at hand, or this is not how Apple works?

 

[rpmurray]

Using the old "chip shortage" excuse for the phone not selling in the numbers they were hoping for.

 

[BuddyTronic]

Ongoing chip shortages faced by the tech industry are affecting production of the iPhone 13 models, according to a new report from Bloomberg.

Apple is expected to cut 2021 iPhone 13 production by as many as 10 million units because of the shortages.

In the final three months of the year, Apple was planning to produce 90 million iPhone 13 models, but Apple's manufacturing partners have been informed that the totals will be lower because Broadcom and Texas Instruments are not able to deliver enough components.

Apple's iPhone 13 supplies are already constrained, and further shortages during the holiday period will push delivery times even further going forward.

According to an iFixit teardown, the iPhone 13 models are using a Broadcom AFEM-8215 front-end module and a Broadcom BCM59365 wireless power receiver, along with display power management IC, array driver, flash LED driver, and dual repeater from Texas Instruments.

Apple has been dealing with chip shortages for months now, and devices like the MacBook Pro, iPhone 11, iPhone 12, iMac, MacBook Air, iPad Pro, and more have seen longer than normal shipping estimates when purchased from the Apple Store.

Back in September, Apple analyst Ming-Chi Kuo said that Apple would cut its MacBook shipments in half due to component shortages, which perhaps does not bode well for the upcoming MacBook Pro machines that are set to be introduced on October 18. The MacBook shortage is related to a lack of power management integrated circuits, a problem similar to the one that the iPhone models also now appear to be facing.

The continuing chip shortages are expected to last well into 2022, and while Apple is facing supply issues due to the problem, it has been one of the least affected companies in 2021. Other tech companies are also dealing with component shortages, which have been driving prices higher.

Article Link: Apple to Cut iPhone Production Goals by as Many as 10 Million Units Due to Chip Shortages

According to Who again? Apple says this? Oh, I didn't think so.

It's a good headline when it moves the needle on the stock - it does not have to be true - just hit the stock and you are golden for the suits executing this anti-apple stock propaganda.

 

[_Spinn_]

That's not good. Though given the supply chain issues everywhere not really a surprise.

 

[FWRN]

Is it chip shortages or because the demand isn't as high as they want.

 

[Realityck]

Is it chip shortages or because the demand isn't as high as they want.

Given there has been news of chip shortages for months effecting everything, this article bringing attention to Broadcom and Texas Instruments are not able to deliver enough components sounds perfectly factual.

 

[Tagbert]

Is it chip shortages or because the demand isn't as high as they want.

Sure, who ever heard of any chip or parts shortages?
Totally made up excuse.

Could only be that.... APPLE IS DOOMED!!!!

 

[DelayedGratificationGene]

Ya Tim pretty much said this so not really news….. but what is news is the unexpected strong demand for the 13…particularly the Pro Max..

 

[Adelphos33]

Even regular iPhone 13s are hard to come by, I think the shortage reason is real rather than lack of demand.

Sitting here with an 13PM now, very happy I got mine yesterday

 

[ghanwani]

I overslept this morning because of chip shortages.

 

[vinegarshots]

So the chips that are already in their possession not enough? Or they still have not received the total number of chips they purchased and is still being manufactured?

I don't get it. When you cook something, you should have all the ingredients at hand, or this is not how Apple works?

That’s not how anyone works. This isn’t a kitchen.

 

[jz0309]

from Jul 28 earnings call, transcript link below


Krish Sankar -- Cowen and Company -- Analyst

Got it. Got it. And then just a follow-up for Tim or Luca. I think, Tim, you mentioned in your prepared comments that in September quarter, there's going to be greater impact on supply constraints on the iPhone and iPad.

So I'm kind of curious, this is the first time I heard you talk about component shortages impacting the iPhone. Can you be more specific? Is it display drivers? Or what exactly is the chokepoint on the supply?

Tim Cook -- Chief Executive Officer

The majority of constraints we're seeing are of the variety that I think others are seeing that are -- I would classify as industry shortage. We do have some shortages. In addition to that, where the demand has been so great and so beyond our own expectation that it's difficult to get the entire set of parts within the lead times that we try to get those. And so it's a little bit of that as well.

As I said before, I think probably maybe with the basis of your question, the sort of the latest nodes, which we use in several of our products have not been as much of an issue. The legacy nodes are where the supply constraints have been on silicon.

Apple (AAPL) Q3 2021 Earnings Call Transcript | The Motley Fool

AAPL earnings call for the period ending June 30, 2021.

www.fool.com

 

[smorrissey]

I’m glad I got my 13 Pro when I did.

Same with my iphone 13 i preordered at the MacStore with no delivery date, next day was available at Amazon with guarantee launch day deliver, so i cancel the first preordered, i did well.

 

[jz0309]

So the chips that are already in their possession not enough? Or they still have not received the total number of chips they purchased and is still being manufactured?

I don't get it. When you cook something, you should have all the ingredients at hand, or this is not how Apple works?

see post #20 #20

 

[smorrissey]

Using the old "chip shortage" excuse for the phone not selling in the numbers they were hoping for.

yeah i know however i think now its serious.

 

[orev]

I'm sure the suppliers are getting a lot of pressure from Apple to resolve this. I hope that doesn't result in issues with quality as they try to speed things up by removing quality checks.

 

[ProfessionalFan]

Using the old "chip shortage" excuse for the phone not selling in the numbers they were hoping for.

Pretty crazy how other companies are saying the same thing about having chip shortages, it must be to help Apple with that cover-up!