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Apple To Reportedly Cut IPhone Production Due To Chip Shortage

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Tech giant Apple Inc. (AAPL) is reportedly expected to cut iPhone production for its latest iPhone 13 series due to the ongoing global chip shortage. Apple shares dropped over 1% in aftermarket trading on the news.

On Tuesday, Bloomberg reported, citing people with the knowledge of the matter, that Apple is likely to cut its projected iPhone 13 production targets for 2021 by as many as 10 million units. The company had forecast of making 90 million iPhones in the holiday-season quarter.

However, Broadcom Inc. (AVGO) and Texas Instruments Inc. (TXN) are struggling to deliver enough components to Apple, an unidentified source told Bloomberg.

The iPhone 13 Pro and iPhone 13 Pro Max went on sale in September, however, orders won't be delivered from Apple's website for about a month. The new devices are listed as "currently unavailable" for pickup at several of the company's retail stores.

On its last earnings call, Apple had warned that supply chain production problems could impact iPhone supply in the current quarter. Apple is currently set to report its next earnings on October 28.

AAPL closed Tuesday's trading at $141.51, down $1.30 or 0.91%, on the Nasdaq. The stock further slipped $1.77 or 1.25% in the after-hours trading.

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