The US tech giant Apple is preparing to cut its production targets, which means a global shortage of iPhone phones in the coming months, according to a report published Tuesday by Bloomberg.
The company will cut its production plan for the iPhone 13 in 10 million units due to problems in the supply chain and the deficit of integrated circuits. The company had planned to manufacture 90 million of the new models of its device by the end of the year, but now this number would be much lower, the newspaper said, citing people familiar with the matter, who did not want to be identified.
Elon Musk compares the chip shortage to the lack of toilet paper early in the pandemic and admits that’s “Tesla’s biggest challenge.”
Despite the fact that Apple is one of the largest buyers of integrated circuits, it faces the same supply problems that plague the technology industry around the world. “Even the king of the tech world not immune to global shortages aggravated by the pandemic “, underlines the medium.
To make its devices, Apple typically purchases parts from Texas Instruments Inc. and wireless components from Broadcom Inc., but for now, all vendors are struggling to deliver sufficient quantities of items.
Currently, there are several signs that the crisis could get worse. According to data from Susquehanna Financial Group cited by Bloomberg, the interval between ordering and delivery of semiconductors increased in September for the ninth consecutive month. Also, the energy crisis in China could complicate the production of Apple’s smartphone.
- The coronavirus pandemic disrupted supply chains of many electronic products, hitting the semiconductor industry the hardest, leading to a shortage of microchips. The crisis of integrated circuits has marked the year 2021 and has affected almost all production sectors.
- As a result, the world’s largest companies have found themselves in a situation where cannot fully manufacture their products, while the damage caused by the shortage is estimated in billions of dollars.
- The chip shortage was forecast will last until 2022.
- In August, it became known that China increased the production of integrated circuits by 47.3% due to the high demand and the incorporation of new productive actors to that industry.