Apple shares fell on Tuesday after reports that it may reduce its iPhone 13 production targets because of the continuing global shortage of computer chips.

Bloomberg reported that the electronic giant expected to sell 90 million iPhones by 2021’s last quarter.

Sources told Business Magazine that Apple had to inform its partners now that the number of units could be reduced by up to 10 million.

Apple shares dropped 1.2% after hours trading following the release of news.

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Broadcom Semiconductor Manufacturers and Texas Instruments also fell 1%. Sources claimed they had difficulty delivering enough chips to Apple on schedule.

Broadcom, Texas Instruments, and Apple have been contacted by the BBC for comments.

Apple released four new iPhone 13 models this September: iPhone 13 Mini, iPhone 13 Pro Max, iPhone 13 Pro Max, and iPhone 13 Pro Pro. Pre-orders began in September. Shipping started September 24th.

Many millions of products from multiple industries depend on computers today. Semiconductor makers’ plants currently work hard to satisfy demand.

Apple and other smartphone makers, which are some of the top chip purchasers around the globe, have suffered severe impacts.

Apple CEO Tim Cook warned shareholders in July that a shortage of semiconductors might impact the sales of iPhones and iPads.

Wedbush is estimating that Apple will have a shortage in iPhone 13 units during the holidays season. This assumes consumer demand keeps up with the remaining iPhones on the market.

John Katsingris, a Wedbush analyst, and Daniel Ives a Wedbush analyst stressed that they did not worry about the lack of chips as the phones would be out in 2022.

The analysts said that the 5-10 million unit movement out of the December quarter and into March quarters due to supply chain problems is not something to worry about. It also speaks to a higher demand trajectory than Wall Street expected.

“We see today’s news only as a speed bump in a multi-year iPhone 12/13 supercycle that continues.”

Many analysts agree with their views. They predict that the iPhone 13 will be a successful year in sales as people upgrade to 5G networks.

Source: BBC.com

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