Apple likely to slash iPhone 13 production due to chip crunch

The company told its manufacturers that the number of units would be lower because the tech giant's chip suppliers including Broadcom Inc and Texas Instruments are struggling to deliver components.

People wearing face masks are pictured at an Apple Store on the day the new Apple iPhone 13 series goes on sale, in Beijing, China.

Apple Inc is expected to cut down production of the iPhone 13 series by as many as 10 million units due to the global chip shortage, Bloomberg News reported on Tuesday, citing people familiar with the matter.

(Sign up to our Technology newsletter, Today's Cache, for insights on emerging themes at the intersection of technology, business and policy. Click here to subscribe for free.)

Shares of Apple, which had projected to produce 90 million units of the new iPhone models by the end of this year, fell 1% to $140.08 in after-hours trading.

Apple’s new iPhone to take longer to reach customers

The company told its manufacturers that the number of units would be lower because the tech giant's chip suppliers including Broadcom Inc and Texas Instruments are struggling to deliver components, the news agency’s report said .

Apple, Broadcom and Texas Instruments did not immediately respond to Reuters' requests for comment.

The global chip shortage , including shortage of components and raw materials like substrates, has surmounted immense pressure on industries from automobiles to electronics , leading many automakers to even temporarily suspend production.