Apple is likely to cut its iPhone 13 production target for 2021 by up to 10 million units due to difficulties obtaining the necessary components, people with knowledge of the matter told Bloomberg. The company had expected to produce 90 million of the new iPhone models in the fourth quarter, but it’s now telling manufacturing partners that the total will be lower because Broadcom and Texas Instruments are struggling to deliver enough chips.
Apple gets display parts from Texas Instruments, while Broadcom is its longtime supplier of wireless components. One TI chip in short supply for the latest iPhones is related to powering the OLED display. Apple also is facing component shortages from other suppliers, the report said.
Apple and TI representatives declined to comment. Broadcom didn’t respond to a request for comment.
The shortages are already affecting Apple's shipments. The iPhone 13 Pro and iPhone 13 Pro Max went on sale in September, but orders won’t be delivered from Apple’s website for about a month. The new devices are listed as unavailable for pickup at several of the company’s retail stores, and Apple’s carrier partners are also seeing similar shipment delays, the report said.
Both TI and Broadcom rely on foundry partners to make their chips and are struggling with the insufficient production capacity in the semiconductor industry. Lead times in the chip industry rose for the ninth month in a row to an average of 21.7 weeks in September, according to Susquehanna Financial Group.
