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It is likely that Apple Inc. cut its projected 2021 iPhone 13 production targets by up to 10 million units due to prolonged chip shortages, people with knowledge of the matter said.

The company expected to produce 90 million new iPhone models by the last quarter of the year, but has now informed manufacturing partners that the total will be lower because Broadcom Inc. and Texas Instruments Inc. they are having trouble delivering enough components, said the people, who asked not to be identified because the situation is private.

The tech giant It is one of the world’s largest chip buyers and usually sets the annual pace of the electronics supply chain. But even with its strong purchasing power, Apple is currently dealing with the same disruptions that have wreaked havoc on industries around the world. Major chipmakers have warned that demand will continue to outstrip supply over the next year and possibly beyond.

Apple Inc. is one of the world’s largest chip buyers.

Apple sources display parts from Texas Instruments, while Broadcom is its longtime wireless component supplier. The company also faces component shortages from other suppliers. Representatives for Apple and TI declined to comment. Broadcom did not respond to a request for comment.

The semiconductor shortage has already affected the ability to ship new Apple models to its customers. The iPhone 13 Pro y el iPhone 13 Pro Max They went on sale in September, but orders won’t ship for another month as the new devices are listed as “currently unavailable” for pickup at some of the company’s retail stores. Apple’s shipping partners are also experiencing similar shipping delays.

Currently, Orders are scheduled to ship in mid-November, giving Apple the ability to deliver the new iPhones in time for the crucial holiday season. The year-end quarter is expected to be Apple’s biggest in sales to date, generating about $ 120 billion in revenue. That would be 7% more than the previous year, and more money than Apple made in an entire year a decade ago.

The iPhone 13, the 13 Mini, the 13 Pro and the 13 Pro Max were introduced

The manufacturer’s troubles show that even the king of the tech world is not immune to global shortages exacerbated by the pandemic. In addition to facing low availability of its flagship product, Apple has struggled to produce the Apple Watch Series 7 and other products.

At the beginning of this year, Apple warned, citing a global chip shortage at the time, that it would face supply restrictions for the iPhone and iPad during the quarter ending in September. That period included about a week and a half of iPhone 13 revenue.

Broadcom does not have large factories of its own and relies on third-party chipmakers such as Taiwan Semiconductor Manufacturing Co. for its products. Texas Instruments manufactures some chips in-house, but also relies on outside manufacturing. That means they are part of an increasingly challenging fight to secure production capacity at TSMC and other foundries. Apple is a TSMC customer unto itself; in fact, it is the largest in the company. Apple uses the manufacturer to make its A-series processors, which do not appear to be under threat of shortages for now.

Apple announced the release date of the new Apple Watch

There are signs that the chip crisis could be getting worse. Industry lead times – the gap between ordering and receiving semiconductors – increased in September for the ninth consecutive month to an average of 21.7 weeks, according to Susquehanna Financial Group.

On the other hand, the prolonged energy crisis in China could add to the headaches of the iPhone maker. Apple supplier TPK Holding Co. said last week that subsidiaries in southeastern Fujian province modified their production schedule due to local government power restrictions. That comes less than two weeks after iPhone assembler Pegatron Corp. adopted power-saving measures amid government-imposed power restrictions.

JFG / ED

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