Nikkei reported on Wednesday, citing sources familiar with the matter, that Apple’s flagship iPhone 13 smartphone production fell 20% from previously planned in September and October.
The holiday quarter is one of the busiest for the company as many consumers look to buy company products as gifts, the week before Christmas.
However, after launching iPhone 13″ range and new iPad devices in September, a big threat looms Apple as it struggles to keep up with global chip shortages and supply chain disruptions.
Managing director Tim Cook told Reuters in October that the impact of supply chain challenges would be worse in 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 halted for several days due to supply chain constraints and restrictions on the use of power in China, Nikkei reported.
During September and October, the reallocation of shared components increased iPad assembly, resulting in approximately 50% less production volume than planned, while production forecasts for the Older generations of handsets are also down about 25%, Nikkei added.
Additionally, Apple has told its component suppliers that demand for the iPhone 13 lineup has slowed, Bloomberg News reported last week.
© Thomson Reuters 2021
