TEMPO.CO, Jakarta – Apple is reportedly starting to get overwhelmed by a shortage of chips, and at the same time, the company is facing slowing demand for iPhone 13. The company is currently telling its component suppliers that they may not be ordering as many units as previously planned.
The technology giant, headquartered in Cupertino, United States, has apparently cut its iPhone 13 production target of 10 million units this year. Initially, Apple set a production target of 90 million. The target was cut due to the lack of availability of spare parts in the hope of being redeemed next year.
Apple CEO Tim Cook had warned of the impact of the supply constraints last October, which could cost the company $6 billion in fourth-quarter sales. “It will be worse during the holiday season, even when demand for new product lines is strong,” he said.
The holiday season will give the company a much-needed boost, with analysts forecasting a 6 percent increase in sales in the final three months of the calendar year. However, it’s still not what Apple envisioned.
Shortages and late deliveries have also frustrated many, both consumers and retailers. In fact, some of them eventually stopped to get their hands on the iPhone 13, leading to a drop in demand.
Such consumers will likely miss the iPhone 13, but could be eyeing the iPhone 14 next year when it launches. Unlike the assessment of the iPhone 13 which is considered to give upgrade smaller than the iPhone 12, the next generation of phones is expected to bring some major improvements.
Apple declined to comment on the current situation and news of the target cut. Including how the current iPhone 13 production conditions.
GIZMOCHINA | REUTERS
Also read:
Apple Has Cut iPad Production to Supply Chips to iPhone 13
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