Apple is only one of few tech companies that continues to suffer from the ongoing chip shortage worldwide. As a result, the firm's iPhone 13 production could likely be affected, according to a person familiar with the issue.
Originally, the Cupertino giant had set 90 million units to be released in the remaining months of the year. However, the latest report suggested that it would only produce around 10 million units due to semiconductor problems.
Apple Slashes Production Targets of iPhone 13
According to Bloomberg's report on Wednesday, Oct.13, the manufacturing goals of Apple for its flagship smartphone will be lowered for this year, as per a source who knows the companies' plans. This is because Texas Instruments and Broadcom are struggling to keep up with chip supplies.
The slash in the production accounts for around 11 percent of the total number of iPhone 13 units.
To date, Apple relies on buying semiconductors from the biggest suppliers. Although the company manages to release new products, the usual production targets for them could not be met.
As the demand for the chips increases, the chipmakers struggle more in coping up with the supplies for their client companies. Some of them have warned that if this persists, the supply will not catch up anymore to the demand by next year.
Texas Instruments provides the display components for Apple, whereas Broadcom is focused on delivering the wireless parts. Meanwhile, TSMC is assigned for iPhone 13 and iPhone 13 Pro's A15 Bionic chip.
Apple CEO Tim Cook Sees Future Chip Shortage
The Verge wrote in its latest report that Apple CEO Tim Cook imposed a warning during the Q3 earnings call. According to the Cupertino boss, he could see upcoming problems with chip supply. However, he said that they would do everything to deal with the issue.
Although Apple has an established relationship with its processor suppliers, it still won't be enough to mitigate the declining production of iPhones.
In the next few months, we could see the arrival of more iPhone 13 units in the market. At the same time, this would indicate that we could only get a limited number of smartphone models for the remainder of 2021.
How TSMC Coped Up With the Chip Shortage?
TSMC, along with another processor manufacturer, Intel, sought new plants in Arizona last June. Amid the chip crisis, the chipmakers decided to come up with a solution to the problem.
The said factories reportedly cost $20 billion to build.
In April, Apple also delayed the production of iPad and Macbooks due to the same reason. At that time, the sources said that there was a "tight" scenario in the supply of iPhone components. The issue forced Apple to reschedule the production of the two gadgets for the second half of 2021.
Related Article: Global Chip Shortage to Be Answered by Sony and TSMC's New Plant in Japan? Would This Affect Relationship with Apple?
This article is owned by Tech Times
Written by Joseph Henry
