A recent report suggested that Apple cut production due to persistent chip shortages. The Bloomberg report claimed Apple cut iPhone 13 orders by 10 million units for 2021. Apple suppliers have discredited such claims, claiming there are no cuts in iPhone 13 orders.
The Bloomberg report claimed Apple downgraded the iPhone 13 due to a lack of chips. In addition, the company is said to have shutdown production on the order of several million. As expected, Apple shares suffered a slight loss when the report was released. Some analysts were shocked by the news and became concerned about Apple’s performance. The report cast doubt on Apple’s position and whether the company will meet demand.
The latest Digitimes report states, “Component suppliers for Apple’s new iPhones have not seen any order cuts this year.” This implies that production of the iPhone 13 is on schedule and the news about the cut is incorrect. In addition, the vendors have no doubts about Apple’s ability to meet demand for the iPhone 13.
Chip scarcity is a severe problem as semiconductor manufacturers are unable to meet consumer demands. During the onslaught of the pandemic, manufacturing facilities closed as consumer demand was catapulted. Earlier this year, Apple warned that a shortage of chips could cause production delays. One of the main reasons for the increased demand is people who work remotely.
There is no way of knowing whether the Bloomberg report or the Digitimes are correct. Apart from that, the iPhone 13 Pro and iPhone 13 Pro Max have delayed delivery dates. Even the Apple Watch Series 7, which hits stores later this week, is expected to face some delays, with some models not arriving until December 2021.