Apple Shares Fall On Worries About iPhone 13 Production.

Key Sentence:

• Apple shares fell on Tuesday after reports the company may cut production targets for the iPhone 13 due to the ongoing global shortage of computer chips.

According to Bloomberg, the electronics giant will produce 90 million iPhones in the last quarter of 2021. But now Apple must tell partners that the total number will be reduced to 10 million units, sources told the business magazine. Apple shares fell 1.2% in after-hours trading on the news.

Why is there a shortage of chips?

Semiconductor makers Broadcom and Texas Instruments also fell 1 percent as sources said they struggled to get enough chips for Apple in time. The sought comment from Apple, Broadcom, and Texas Instruments. In September, Apple released four new iPhone 13 models. IPhone 13, iPhone 13 mini, iPhone 13 Pro, and iPhone 13 Pro Max. Pre-orders begin on September 17th, and deliveries start on September 24th.

Widespread chip shortage

Millions of products in various industries depend on today’s computer chips, and semiconductor manufacturing facilities are now fully operational to meet demand. Smartphone makers like Apple some of the world’s biggest chip buyers – have been hit hard. But so have other sectors such as the auto industry and video game console makers.

In July, Apple CEO Tim Cook warned investors that a shortage of semiconductors could affect iPhone and iPad sales.

Investment firm Wedbush estimates Apple will lose more than five million iPhone 13s for the holiday season. If consumer demand continues to track iPhone shipments by the end of the year. Wedbush analysts Daniel Ives and John Katzingris stressed. That the chip shortage is not “worrying” as they expect the smartphone to be available in early 2022.

“If we take a step back, 5 to 10 million units moving quarter from March to quarter as well-understood supply chain issues won’t bother us. And will ultimately suggest that demand will expand more than Wall Street expected,” they said. We saw today’s news as nothing more than the perpetual acceleration of the iPhone 12/13 supercycle that continues.”

Several other analysts share their views, who predict the new iPhone 13 models will have a strong sales year as consumers try to upgrade the device for 5G networks.