Apple’s share price dropped on Tuesday. The reason was that Apple Inc. is likely to cut its projected iPhone 13 production target of 90 million for 2021 because chip shortages hit its flagship product production, according to experts in the field.
According to Bloomberg, Apple expected to produce 90 million iPhones in the last three months of the year.
But as its suppliers, Broadcom Inc. and Texas Instruments Inc. are struggling their way to deliver components.
So the company is telling the manufacturers that they might see low production than the expected production amount.
Major chipmakers are warning Apple and other technology companies that this crisis can last till next year or maybe beyond.
This news made investors sell their shares as they are expecting to go share price more below.
Apple share price slipped to $141.04 lowest for the day in late trading after Bloomberg reported on the news.
Current orders are slated to ship around mid-November.
If the demand continues to hit the sky because of holiday season. Apple might face a shortage of more than five million iPhone 13 units, Investment firm Wedbush estimated.
Japan Display Inc.’s share price slashed as much as 5.6% in the two months as it gets more 50% of revenue from Apple.
Apple’s acoustic parts Hong Kong maker AAC Technologies Holdings Inc.’s share price slashed 11.82% in the last 5 days.
On Wednesday, Hong Kong’s bourse was suspended because of a typhoon.
Coming back to the Apple, back in July 2021, CEO Tim Cook warned investors that the semiconductor shortage could affect sales of the iPhone and the iPad.
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