(Bloomberg) Apple Inc. is expected to cut iPhone 13 production targets by about 10 million units due to a prolonged chip shortage.
The tech giant had projected to produce 90 million units this quarter but has since revised the target downwards saying that major suppliers were struggling to meet components demand.
Apple stocks, which had been up 6.6% year-to-date, dipped 1.6% to $139.27 after the announcement.
Shares of Broadcom and Texas Instruments have also dropped. Other Apple’s major suppliers like Japanese Display Inc. and LG Innotek co. have lost 5.6% and 6.2%, respectively.
The setback has delayed iPhone 13 Pro and iPhone 13 Pro Max shipments, with both devices currently listed as unavailable in most company stores.
Current customer orders will be shipped in mid-November. Analysts are, however optimistic that Apple’s revenue will jump 7% in the quarter to about $120 billion.
AAPL: NASDAQ is down -0.66% on pre-market, AVGO: NASDAQ is down -1.26% on pre-market, TXN: NASDAQ is down -0.2% on pre-market.
