Hardware production’s most notorious enemy, chip shortage, has struck again. This time Apple has suffered from it, and as a result, it’s set to cut this year’s production targets for the iPhone.
According to a report from Bloomberg, the company is set to slash the target by a whopping 10 million — readjusting the initial target from 90 million units down to 80 million.
Apple’s chip suppliers like Texas Instruments and Broadcomm haven’t been able to produce and supply enough units. So that has affected iPhone manufacturing as these companies supply parts for display and network components.
Bloomberg’s report noted that the gap between order and delivery of a chip has hit a record 21.7 weeks. Such delay can cause a lot of trouble in managing hardware launch and availability schedules.
This delay in production can mean that if you were planning to buy the iPhone 13 Pro or the iPhone Pro Max, you might have to wait a bit longer for delivery. Several Apple stores also have listed certain models as “unavailable.”
In July, during its earnings call, the company had said that chip shortage problems have affected its financial results. Plus, products like iPad and Mac have faced delivery delays because of this issue. And now, its newest iPhones and the Apple Watch 7 are feeling the effects of it.
After Bloomberg’s reporting on iPhone production cut, Apple’s share took a 0.9% dip. But that’s hardly a bother for a company valued at over $2 trillion.