iPhone 13 production could have taken a major hit for the first time in a decade. According to reports, Apple has halted the production of its iPhone models due to supply chain limitations. This comes after reports which surfaced online about the US tech giant informing its suppliers about the weakening demand for the new iPhone 13 models.
According to a Nikkei Asia report, Apple has halted the assembly line of its iPhone production unit for the first time in over 10 years due to supply chain constraints. The report does not specifically mention anything about the new iPhone 13. However, it is safe to speculate that the new iPhone models -iPhone 13, iPhone 13 Pro Max, iPhone 13 mini, and iPhone 13 Pro - could be among the list of affected models.
The production trouble has landed up at a time when Apple’s suppliers work in full capacity to meet the demand for the new iPhone models ahead of the Christmas festive season. Instead of workers working extra shifts, they have been getting time off.
One of the sources told Nikkei that the production line was halted due to shortage of components and chips. Therefore, it does not make any sense for workers to work overtime ahead of the festive season. “That has never happened before. The Chinese golden holiday in the past was always the most hustling time when all of the assemblers were gearing up for production,” the supply chain source said.
The company had previously cut down its iPhone 13 production estimates by 10 million units due to the ongoing chip shortage. Apple had plans to ship over 90 million units in 2021. However, some of the company’s suppliers were not able to chip in enough components.
CEO Tim Cook, during the company’s recent earnings call, said that the supply chain issues, which are expected to continue till December, had already cost Apple over $6 billion. Despite the shortfall, the iPhone 13 maker is on track for a record holiday season. Analysts project a sales increase of 6 percent to $117.9 billion during the last quarter of the year.