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Chip Shortage to Force Apple to Cut iPhone 13 Production

Apple may cut production of the iPhone 13 due to chip shortages. Credit: Karlis Dambrans, CC BY-SA 2.0

Apple announced on Wednesday that they may have to cut production of the new iPhone 13 short due to chip shortages.

The company was projected to manufacture 90 million new iPhones before the end of 2021, but Bloomberg has reported that the company believes that that number may be lowered by as much as 10 million.

Apple is one of the most powerful chip buyers on the planet and dictates the order of the global electronics supply chain. Despite their looming presence, the company is still falling prey to the supply chain issues that have dramatically impacted industries worldwide. Chipmakers have issued stark warnings that supply will not be able to meet the demand for chips into 2022, and possibly after that.

Apple sources the pieces of its phones from Texas Instruments and Broadcom. A TI chip that is currently scarce is used for powering the OLED display of the new iPhone. Apple is also dealing with shortages from different suppliers as well.

The speculation surrounding the company’s production issues has caused its shares to drop by 1.6%, its price currently sitting at $139.27 since Bloomberg‘s report. Broadcom and TI have also dropped.

Customers have suspected something was afoot after Apple’s shipping times for the new phone became delayed. The iPhone 13 Pro and iPhone 13 Pro Max were released in September, but orders were not fulfilled for at least a month after. The new models are often marked as “currently unavailable” at many Apple stores across the country.

Apple prepares for big year-end quarter despite iPhone 13 production issues

Current orders are expected to be delivered to customers sometime in mid-November, which means that Apple could still recover some profit during the extremely important Thanksgiving season. Despite the rumored production issues, this year-end quarter is expected to rake in $120 billion in revenue for Apple.

The new iPhone 13 and iPhone 13 mini come equipped with a larger battery, and the smartphones will last up to an hour and a half longer than their predecessor. The iPhone 13 Pro boasts a two-and-a-half longer battery life.

The various iPhone 13’s also have the same screen size as the 12, with the mini and the regular’s screen measuring 6.1 inches, and the Pro and Pro max’s measuring 6.7 inches. A standout was a new color model added to the iPhone 13 called “Sierra Blue.”

Another crucial distinction between the regular and the mini iPhone 13 and the Pro models is that the latter has three rear-facing cameras: a zoom lens, a wide lens, and an ultra-wide lens, which can render extremely close distance objects in high detail.

The Pro models also have a feature called the “Super Retina XDR with ProMotion” that improves the user experience of scrolling through the iPhones display by doubling the phone’s refresh rate.

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