Apple may have an issue with the iPhone supply and demand
Apple is hinting to its iPhone 13 component suppliers that it may not order as many units as expected as there is a drop in demand, as per a Bloomberg report. Chip shortage may not explain everything.
While the company had already reduced orders for the year to 80 million, below a target of 90 million, it was reported that it planned to make up for much of the drop next year. However, Apple is said to have told manufacturing partners that this may not happen and that they may not see the expected increase in orders.
Like almost every other tech company, Apple has been grappling with supply problems brought on by a global semiconductor shortage. CEO Tim Cook said the company's latest quarterly earnings were hit by an estimated $ 6 billion impact due to shortages and the effect of COVID-19 on manufacturing in Southeast Asia, with Apple expecting an even more significant impact on this current holiday quarter.
However, if the Bloomberg report is accurate, it suggests that the iPhone 13 range might not meet Apple's initial expectations even without the supply shortage. The original plan to assemble 90 million units by 2021 reflected a forecast of increased demand, as Apple typically orders around 75 million iPhones for the year of each launch.