iPhone 13 Production Is Confirmed To Drop 20 Percent From The Initial Target Due To World Chip Crisis

Production of the iPhone 13 is constrained by the scarcity of chips. (photo credit: pixabay)

JAKARTA – World chip shortage and crisis have affected many big tech companies in the world. One of them is Apple Inc.

Nikkei reported on Wednesday, December 8, citing sources familiar with the matter, that if Apple Inc.'s flagship iPhone 13 phone production later this year is reported to be down 20% from the previous plan in September and October,

This holiday quarter is one of the busiest for the company as many consumers are looking to buy its products as gifts, a few weeks before Christmas.

However, after launching its new iPhone 13 and iPad lineup last September, a major threat looms over Apple as it struggles to keep up with global chip shortages and supply chain disruptions.

Apple's chief executive, Tim Cook, told Reuters in October that the impact of supply chain challenges would be worse during the holiday sales quarter than in the previous quarter.

In October, for the first time in more than a decade, iPhone and iPad assembly was suspended for several days due to supply chain constraints and power usage restrictions in China, Nikkei reported.

Throughout September and October, the reallocation of shared components put further pressure on iPad assembly, causing production volume to be about 50 percent less than planned, while production forecasts for older iPhones also fell by about 25 percent, Nikkei added.

Additionally, Apple has notified its parts suppliers that demand for its iPhone 13 lineup has slowed, Bloomberg News reported last week.