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Apple Cutting iPhone Production Targets by 10 Million: Report

Semiconductor chip shortages are expected to impact Apple iPhone manufacturing.

Apple Inc.  (AAPL) - Get Apple Inc. (AAPL) Report is preparing to cut its iPhone production goals by up to 10 million units this year due to ongoing shortages of chips necessary for its devices, according to a published report Tuesday.

The tech giant was targeting 90 million new iPhones in the current quarter, ahead of the key holiday shopping season, Bloomberg reported, citing people with knowledge of the matter.

However, Apple suppliers Broadcom Inc.  (AVGO) - Get Broadcom Inc. Report and Texas Instruments  (TXN) - Get Texas Instruments Incorporated Report are facing challenges in delivering key components used in phones, in particular the newest iPhone 13 which launched this fall.

Shares of Apple fell $2.08, or 1.47% to $139.43 in after-hours trading after losing 0.9% in the regular session.

Broadcom shares fell 1.1% to $480.00 while Texas Instruments fell about 1% to $186.51 in after-hours trading. 

Overall, stocks of companies that supply parts and services to Apple Inc. were mixed Tuesday.

Among notable small-cap stocks of companies supplying Apple, six rose while 20 fell.

Among the large caps, Texas Instruments led declines in the regular session, falling $4.89, or 2.53%, to $188.48.

How the Long Tech Rally Evolved

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The tech heavy Nasdaq Composite Index fell 20 points, or 0.1%, to 14,465.

In the broader markets, the S&P 500 index fell 10 points, or 0.24%, to 4,350.

The major S&P 500 sub sectors were mixed.

The real estate sector index rose 3.73, or 1.34%, to 283.

The communication services sector index fell 2.81, or 1.05%, to 265.

Among major market indicators, U.S. 10-Year Treasury yields fell 4 basis points to 1.57%.

Gold rose $6.51, or 0.4%, to $1,760.41 an ounce.

Apple Inc is a component of the Action Alerts Plus portfolio.

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