In July, Apple (AAPL) - Get Apple Inc. (AAPL) Report CEO Tim Cook said that the ongoing chip shortage could impact sales. Fast forward to October, it seems to be really happening as the company is reportedly slashing the production of its new iPhone
Bloomberg reported that Apple (AAPL) - Get Apple Inc. (AAPL) Report could slash new iPhone production by as much as 10 million units. The iPhone-maker company was expected to produce 90 million units this year.
Morgan Stanley analysts say that if the production cut happens, they would expect the quarterly cadence of iPhone shipment estimates to change, but people should expect little change to FY22 annual iPhone shipment forecast of 238.5M units (+4% Y/Y).
"We'd also note that if Apple does cut C2H21 iPhone 13 production by 10M units, that would imply 77M iPhone 13 builds in C2H21, in-line to slightly higher than the last 3 years of C2H new iPhone model production," wrote Morgan Stanley analyst Katy Huberty.
Apple released four new iPhone 13 models in September.
In the same month, the White House sat down with tech and auto giants to discuss the chip shortage.
A recent study from Alix Partners warned that the semiconductor shortage could cost the auto industry $210 billion in revenue in 2021.