Apple’s stock fell on Tuesday after it was reported that the company may reduce its iPhone 13 manufacturing plans due to a global computer chip shortage.
Bloomberg said that the electronic giant expected to produce 90 million iPhones in the fourth quarter of 2021.
According to the business journal, Apple is now forced to inform its partners that the total units would be reduced by up to 10 million devices. Right after the announcement of this news, Apple shares dropped to 1.2 percent in after-hours trade.
The BBC reported that the semiconductor makers Broadcom and Texas Instruments were also down 1%, according to insiders, as they struggled to supply enough chips to Apple on schedule.
Semiconductor shortage has become the global issue now, Tech giant are suffering way more than it was expected. US president Mr. Biden met multiple CEOs to tackle this global issue.
Millions of products in a variety of sectors now rely on computer chips to function, and semiconductor manufacturers’ factories are now operating at full capacity to fulfil demand.
Smartphone manufacturers including Apple, which is one of the world’s largest chip purchasers, have been severely impacted, as have other industries such as the automotive industry and video game console manufacturers.
“Taking a step back, 5 million to 10 million units moving out of the December quarter into the March quarter due to well-understood supply chain issues is not a worry for us and ultimately speaks to a stronger demand trajectory than Wall Street had been anticipating.”Daniel Ives and John Katsingris – Wedbush Analysts
Several other analysts agree with them, predicting that the new iPhone 13 models would have a good sales year as users update smartphones for 5G networks.
iPhone 13 Series is going pretty well because of the new cinematic feature and the Pro Motion display with 20% lesser notch. The latest iPad Mini has been a great hit, but one common issue arises in the latest iPhone products displays.