Thu, 23 Sep 2021

Manufacturing of iPhones to fall due to shortage of chips

Robert Besser
01 Aug 2021, 05:14 GMT+10

CUPERTINO, California: Apple Inc said this week that the global chip shortage could soon affect iPhone production, with declining revenue growth and lowering the value of its shares.

Apple had earlier said that the chip shortage could reduce sales by $3 to $4 billion.

Further, Apple executives expect double-digit revenue for the fourth quarter, but below the 36.4% growth rate in the just-ended third quarter. Growth will also slow in Apple's services business, they said.

During an investor call, Chief Executive Tim Cook said that chips are used in supporting parts needed to make the company's iPhone.

"We do have some shortages," Cook said, "where the demand has been so great and so beyond our own expectation that it's difficult to get the entire set of parts within the lead times that we try to get those."

"Apple will want as many chips as it can get its hands on," Angelo Zino, an analyst with research firm CFRA, told Reuters. "But when you couple that with the existing supply constraints, Apple is likely going to have a more difficult time meeting demand this year."

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