According to people familiar with the matter, Apple IncThe company is likely to cut its 2021 iPhone 13 production target by as much as 10 million, as its flagship products face chronic chip shortages.
Apple Inc had expected to produce 90 million new iPhone models in the last three months of this year, but people familiar with the matter said the company was now telling manufacturing partners that total production would be reduced because Broadcom Ltd and Texas Instruments IncThe company is trying to deliver enough components.
Apple Inc is one of the world's largest chip buyers, but even with strong purchasing power, it is grappling with supply disruptions that have wreaked havoc on industries around the world. Leading chipmakers warn that demand will continue to outstrip supply for the whole of next year or beyond.
Apple Inc obtained display components from Texas Instruments Inc, and Broadcom Ltd is a long-term supplier of its wireless components. Apple Inc also faces parts shortages from other suppliers.
Companies such as Apple Inc didn't respond to requests for comment.
After the news, Apple Inc's share price fell more than 1% in after-hours trading, while Broadcom Ltd and Texas Instruments Inc investors also fell in after-hours trading.