American tech giant Apple Inc. is expected to cut down this year’s production targets by as much as 10 million units due to the ongoing chip supply shortage, Bloomberg reported.

  • Apple earlier said it would produce 90 million units of its new iPhone model in the fourth quarter, but it has advised partners that production would be lower due to insufficient component deliveries from Broadcom Inc. and Texas Instruments Inc.
  • The company supplies its display parts from Texas Instruments, with one chip from the firm in short supply for the latest iPhone models involving the OLED display. Its wireless components are sourced from Broadcom. 
  • Other suppliers of Apple have also reported shortages, recording a decline in their stocks. Among them are Japan Display Inc., LG Innotek Co., Skyworks Solutions Inc., Cirrus Logic Inc., AAC Technologies Holdings Inc., and ASE Technology Holding Co.
  • Apple earlier warned of supply constraints of the iPhone and iPad in the third quarter, citing the issues on the global chip supply. The period covered a week and a half of revenues involving iPhone 13.

Indications are hinting that the chip shortage is worsening, with industry lead times up for the ninth straight month in September. AAPL is down 0.69%, AVGO down 5.31%, TXN down 0.41%, SWKS down 2.68%, CRUS down 1.61%, ASX flat premarket, and 6740 down 2.78%, 011070 down 1.30%, and AACAY down 0.32% postmarket.