Major iPhone 13 chip shortage reportedly forcing Apple to slash 10 million iPhones

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iPhone 13 release window may be hit by global chip shortage: Apple has cut its production expectations by up to 10 million units due to production issues stemming from component shortages, a new report suggests.

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While ongoing chip shortages due to the impact of the COVID pandemic have affected the PS5’s restox, cars, and other phones, we hadn’t heard whether it would affect the iPhone 13. But while Apple was hoping to produce 90 million phones (including the iPhone 13, iPhone 13 Mini, iPhone 13 Pro and iPhone 13 Pro Max), its suppliers Broadcom and Texas Instruments struggled to provide components, sources said. has done. bloomberg.

The biggest focus of global chip shortages has been on supply shortages for Nvidia GPU stocks as well as PS5 and Xbox Series X stocks. But this new report shows just how far the problem lies: For the iPhone 13, Broadcom supplies the wireless components while Texas Instruments provides the display parts, according to Bloomberg. And they’re reportedly not the only suppliers struggling to get enough components to Apple.

So how will 10 million fewer iPhones affect Apple?


While production doesn’t exactly equal sales, phone shipments are shorthand for success, and having 10 million fewer iPhones could put a serious dent in Apple’s bottom line. But it’s important to put it in context, especially considering how many numbers are thrown around. The short answer is up to $7.2 billion in lost sales versus last year’s numbers — read on for how we got there.

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In previous years, the months following the launch of a new iPhone would see the most sales throughout the year: the end of 2020 (which Apple loops into early January on its financial calendar, making this Q1 2021) marked the end of the year. Seen a record $65 billion in sales. Companies tend to shy away from listing units sold in their reports (unless they choose to disclose them as bragging points in press releases), but research firm IDC estimated that Apple spent that period. shipped 90.1 million iPhones in CNBC.

If Apple had shipped 10 million fewer iPhones in that period, which is about 11%, napkin math shows that it could lose $7.2 billion in sales. That’s a broad estimate, of course, and doesn’t reflect whether consumers will settle for an iPhone shipped later, rather than if they can’t open one over the holidays.

It also doesn’t reflect the iPhone line’s record sales through the entirety of the 2021 fiscal year: Q1 2021 iPhone sales were up 18% compared to Q1 2020, with Q3 2020 sales (per Apple’s copy) in Q3 2021 An increase of about 50% in comparison. income report for Q1 2021 And Q3 2021, respectively). In other words, we’re on track for another record year of iPhone sales this holiday season, and 10 million fewer iPhones in stores or online could make a big dent in Apple’s biggest sales period ever.

We’ll have to wait for guidance from Tim Cook and other Apple executives when the company announces its Q4 2021 earnings on October 28, 2021.

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