iPhone 13 Production Gets Very Bad News: Apple Facing Massive Shortage

iPhone 13 Production Gets Very Bad News: Apple Facing Massive Shortage
Due to chip scarcity concerns, Apple's iPhone 13 is experiencing a massive production shortage. Photo : Ming Yeung/Getty Images

Due to chip scarcity concerns, Apple's iPhone 13 is experiencing a massive production shortage.

However, it seems that the tech giant is facing another bad news, which is slow demand.

iPhone 13 Bad News: Massive Demand Shortage

In a previous report, it's already revealed that iPhone 13's manufacturing will be limited by millions.

The limitation is due to a scarcity of computer chips and a supply chain problem, which also impacted Apple shares, causing them to drop by one percent last October.

In addition to this, Bloomberg previously reported that the Cupertino-based technology company aimed to build 90 million iPhone devices by the end of this year, per The Guardian. Unfortunately, there is a possibility that the projected quantity of the iPhone devices may not be fulfilled.

Due to a processor shortfall and a supply chain problem, Apple will reduce the manufacturing of the iPhone 13 series after its debut last September.

As a result, Apple informed its manufacturers that the reported numbers would be less since processor suppliers Broadcom Inc. and Texas Instruments were having difficulty delivering their components.

According to Business Today, Apple has anticipated poor sales growth and a chip scarcity, which has affected its ability to sell Macs, iPads, and iPhones. Texas Instrument, in addition to Apple's projection, also predicted chip supply issues for this year.

On the other hand, it seems that the tech giant currently faces a different problem, which is slowing demand. According to Bloomberg, Apple has detected a drop in demand for the iPhone 13.

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Several experts expected a six percent increase in sales to $117.9 billion in the last three months of the calendar year for Apple. However, Apple and Wall Street's sale prediction for the last months of 2021 would not go further, per Bloomberg.

In relation to the iPhone 13 bad news, numerous customers have been upset by shortages and delivery delays.

With the inflation and the Omicron strain causing new worries for pandemic-weary customers, some purchases may be postponed.

iPhone 13 Slow Demand: What Seems To Be the Problem?

Chief Executive Officer Tim Cook stated on Apple's previous earnings call in October that demand for new products was "extremely solid," which was fueled by consumers' interest in the latest iPhones, iPads, and other gadgets.

Cook also pointed out that the company's main difficulty this year is the lack of supplies.

Due to this matter, Apple would lose more than $6 billion in revenue over the Christmas quarter due to a shortage of components, mainly CPUs.

Ars Technica added that the demand shortage might be caused by a variety of factors that are difficult to pinpoint.

It is likely that consumers must have seen that the iPhone 13 has an insufficiently significant upgrade over last year's iPhone 12.

The iPhone 13 improved on the iPhone 12 in terms of photography and battery life, but it did not provide much else.

In addition to the iPhone 13 bad news, Apple consumers might have heard that next year's model will be a huge leap with a slew of new features.

Despite the slow demand, interested customers on the iPhone 13 must also note that it depreciates less than other iPhones since release.

Related Article: iPhone 14 vs. iPhone 13: New Chip Leak Could Prevent Fans from Upgrading

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