Apple has reportedly notified its parts suppliers that demand for the iPhone 13 is slowing. So Apple also plans to cut production of the iPhone 13.
According to a report from Bloomberg News, the reason for this is due to a lack of chip supply and the decline in consumer attractiveness for this phone.
Apple had previously cut production of the iPhone 13 by 10 million units, where the initial target was 90 million units. But now Apple has informed vendors that the order is unlikely to materialize.
Unfortunately, both Apple and its suppliers such as 3M Co (MMM.N), Broadcom Inc (AVGO.O) and Advanced Micro Devices Inc (AMD.O) have not yet responded to this cut.
The beginning of the global shortage of chips due to the high demand for smartphones and gadgets during the COVID-19 virus pandemic has affected the automotive industry and disrupted the production of many companies, one of which is Apple.
In October, Apple Chief Executive Tim Cook warned that the impact of supply constraints that cost the company $6 billion in sales in the fiscal fourth quarter, will be worse during the holiday quarter and chip shortages are affecting most of their products.
The Nikkei reported last month that Apple is even cutting back on iPad tablet production to allocate more components to the iPhone 13
