Poisoned Apple! Tech giant cuts production of its iPhone 13 after demand SLUMPED: Shoppers ‘have given up trying to find pricey phone amid supply crisis and rumors next version will be huge leap forward’
- Apple Inc., has cut production of the iPhone 13 after demand for the device had slowed down
- They had reportedly cut its production goal for the year by as many as 10 million units, down from their target of 90 million, due to a global chip shortage
- The effects of the ongoing supply chain crisis such as inflation of prices and delivery delays have hindered shopper’s motivations to purchase the product
- Many are also said to be holding out for the iPhone 14, which will be released next fall and should more dramatic updates than this year’s models
- The company hoped to ramp up production again next year but are now telling vendors that the orders look unlikely
- Apple CEO Tim Cook said in October that the supply crisis had cost the company $6 billion in sales during their fourth quarter
Tech company Apple Inc., has cut production of the iPhone 13 after the demand for the device slumped.
Many shoppers who originally wanted the phone – whose most expensive model costs $1,599 – are said to have given up as ongoing supply chain issues lead to shortages.
Others are said to be holding out for the iPhone 14. It will debut in fall 2022, and will likely have far more dramatic updates than the 13, which is a tweaked version of the 2020 iPhone 12.
Rocketing inflation – which currently sits at 6.2 per cent – has also spooked many Americans, who’ve decided to save rather than splurge on luxuries.
Apple had reportedly cut its goal for the year by as many as 10 million units, down from their target of 90 million, due to a global chip shortage.
They had hoped to ramp up production again next year due to the current global supply chain crisis.
The company, however, have since informed vendors that the orders look unlikely.
Tech company Apple Inc., has cut production for the iPhone 13 after demand for the device had slowed down due to a global chip shortage caused by the ongoing supply chain crisis
The effects of the supply chain crisis has hindered shopper’s motivation to buy the product due to an inflation of prices and delivery delays. Customers are seen standing in line during a sales launch at the Apple Inc., store in New York on September 24.
The sales expected for the upcoming holiday season were expected to raise by six percent to $117.9 billion during Apple’s final quarter, according to Bloomberg News.
Products such as the iPhone 13, which starts at $699, as well as the new version of AirPods and a redesigned MacBook Pro were expected to be the most highly-demanded.
The iPhone has always been considered one of Apple’s most important products as it was responsible for approximately half of their $365.8 billion revenue last year.
Apple had even offered rebate programs and cheap upgrades to try and ramp up demand for the iPhone 13.
The effects of the ongoing supply chain crisis hindered the motivation to splurge on expensive goods with prices already inflated, delivery delays, and concerns of the recent Omicron variant.
It is also believed that money towards technological products, which had thrived during the pandemic, is now being used for vacation and outdoor activity purposes.
Apple’s shares were down to 0.61 percent at market closing on Thursday, with numbers raising as low as 4.2 percent earlier in the day
‘As lockdowns eased, spending returned on these experiential activities, so may be less for the new iPhone,’ Counterpoint Research analyst Tarun Pathak told Reuters.
‘We believe that (iPhone) demand is likely to be pushed out in 2022.’
The company’s shares were down to 0.61 percent at market closing on Thursday, with numbers raising as low as 4.2 percent earlier in the day. Apple remains the second most valuable company in the world – after Microsoft – with a market cap of $2.64 trillion dollars.
Suppliers in Asia had extended their deadlines with the LG Innotek Co. in South Korea dropping 8.4 percent and the TDK Corp. in Japan losing 3.6 percent.
Numbers in Europe also slipped with a 3.9 percent decline for STMicroelectronics NV and a drop of 3.1 percent for Infineon Technologies AG.
Apple CEO Tim Cook said that the chip shortage had cost the company $6 billion in sales in the fourth quarter
Apple CEO Tim Cook said in October that the supply chain crisis, which had affected the chip shortage, had cost the company $6 billion in sales in the fourth quarter.
‘We’re doing everything we can do to get more (chips) and also everything we can do operationally to make sure we’re moving just as fast as possible,’ Cook had told Reuters.
Cook also said he expected a year-over-growth for Apple for the quarter ending in December. Analysts had expected a growth of 7.4 percent to $119.7 billion.
‘We’re projecting very solid demand growth year over year,’ Cook said. ‘But we are also predicting that we’re going to be short of demand by larger than $6 billion.’
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