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10 million iPhone 13 production cuts likely! Chip shortages hit Apple

via:智东西     time:2021/10/13 20:02:06     readed:64

Compile |Cheng Qian

Edit |Li Shuiqing

Apple may cut production of its iPhone 13 series by nearly 11 percent, or 10 million units, according to bloomberg, citing sources.

Initially, Apple planned to produce 90 million iphones in the last three months of 2021, according to a Bloomberg report. Supply problems with Chips from Broadcom and Texas Instruments meant apple couldn't get enough parts to meet its iPhone production targets, As a result, the delivery time of Apple iPhone, MacBook and other series is greatly extended.

First, as the chip shortage continues, Apple will have to cut production

There are some signs that the chip crisis is getting worse. Lead times in the chip industry have increased, with the gap between orders and receipt rising for nine straight months and reaching an average of 21.7 weeks in September, according to market analyst Susquehanna Financial Group. Major chipmakers say demand will outstrip supply through next year and possibly into the future.

Apple, one of the world's biggest chip buyers, sets the annual rhythm of the electronics supply chain. But Apple, a voice in the chip supply chain, is also grappling with supply disruptions that have wreaked havoc across industries around the world.

The cutback is said to be due to two major suppliers, Broadcom and Texas Instruments. As shown in the thorough disassembly of the iPhone 13 Pro logic board by iFixit, the ‌iPhone 13‌ model uses broadcom AFEM-8215 front-end module and Broadcom BCM59365 wireless power receiver, And display power management IC, array driver, flash LED driver and dual repeater from Texas Instruments.

Broadcom and TI are both in trouble. Broadcom has no big factories and relies on contract chipmakers such as TSMC to make its products. Ti also relies on external manufacturing, even if it makes some of its chips in-house. As a result, the production patterns of these companies make it challenging for TSMC and other foundries to increase capacity.

Meanwhile, Apple itself is TSMC's biggest customer, producing the main A15 Bionic SoC for the iPhone 13 and iPhone 13 Pro, but TSMC has so far said their supply does not appear to be affected.

Ii. Delayed delivery of many Apple products, with delivery time of nearly a month

Apple shares fell as much as 1.6 percent to $139.27 in late trading after Bloomberg reported the cut. Through Tuesday's close, the stock was up 6.6% this year. Broadcom and Texas Instruments also fell in after-hours trading.

Apple has been dealing with chip shortages for months, which have affected delivery times for its new models. The iPhone 13 Pro and iPhone 13 Pro Max went on sale in September, but couldn't be delivered to customers within a month or picked up at Apple's retail stores. Second, shipments of MacBook Pro, iPhone 11, iPhone 12, iMac, MacBook Air, iPad Pro and other devices purchased from the Apple Store took longer than normally expected. Shipments from Apple's carrier partners were also delayed.

Current orders in the Apple Store show shipments around mid-November, so Apple could still get the new iphones to consumers in time for the holiday shopping season.

In addition to facing tight iPhone supplies, the company is also struggling to produce the just-released Apple Watch Series 7 and other products.

Apple has also had supply issues with macBooks. Back in September, apple analyst 𠓹 ming-Chi Kuo said the company would ship half as many macBooks due to component shortages, which might not be good for the MacBook Pro, which launches on Oct. 19

The MacBook shortage is related to a lack of power-management integrated circuits, a problem similar to the one facing iPhone models.

The fourth quarter of the year will be Apple's biggest sales blitz to date, generating about $120bn in revenue, up about 7% from a year earlier and forecast to far exceed Apple's annual revenue a decade ago.

3. The US government gives the green light to chip production

During Apple's q3 earnings call, Apple CEO Tim Middot; Tim Cook, apple's chief executive, has warned that production of the iPhone range could be affected by chip supplies, noting that "we will do everything we can to mitigate any problems we encounter".

Even apple's best efforts and relationships with its suppliers have not kept the iPhone 13 series in production.

Even if apple eventually manages to ramp up production, production of the iPhone13 series will be difficult to supply in the future as chip production is slashed.

To help address supply chain problems, the US Department of Commerce on the 8 Nov released a set of questionnaires on global chipmakers' response to the chip crisis, but the effort is facing resistance from lawmakers and executives in Taiwan and South Korea.

Gina Middot, SECRETARY of Commerce; Gina Raimondo, Japan's prime minister, tweeted earlier this week about a proposed $52bn plan to support chip manufacturing in the US, and Japanese Prime Minister Fumio Kishida said he would work to set up a chip production base in Japan.

Bottom line: The chip crisis continues, and Apple can't fight it

There are signs that the chip shortage will persist for a long time, even though Apple, one of the less affected companies in 2021, is also struggling with its production and supply. Apple's travails show that even tech leaders are not immune to chip shortages caused by globalization exacerbated by the coronavirus outbreak.

In addition, in the context of the globalization of the semiconductor industry, other technology companies have been heavily dependent on chip imports. In order to reduce import dependence, technology companies increase investment in basic research, which can effectively alleviate the chip shortage. But at present, these measures have also led to a greater shortage of raw materials and equipment for related products and increased prices, which to some extent has had a negative impact on the solution of chip shortage.

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