Apple’s production of its latest iPhone 13 smartphone was 20 percent lower than what it had planned for the month of September and October.
The decline in production comes at a time when technology giants, including Apple, are struggling to tackle ongoing supply chain challenges and a global chip shortage.
These challenges are likely to impact Apple’s holiday season sales as Q4 is the busiest season for the company, with consumers buying Apple products such as iPhones for gifts.
In an October interview, Apple CEO Tim Cook had noted that the supply chain challenges would have a particularly detrimental effect on holiday sales than in previous quarters. In the same month, Apple was forced to halt its iPhone and iPad assembly line for several days in China as both supply chain issues and limitations on the use of power caused disruptions. The incident marked the first time Apple had to temporarily shut its manufacturing operations in more than a decade.
The closures had a significant impact on Apple’s production capabilities. According to Reuters, the company was forced to reallocate its shared components, which further impacted its iPad assembly line, resulting in a 50 percent downturn. Meanwhile, the production forecast for older generations was reduced by 25 percent.