Apple Co. Is launching a new iPhone model every twice a month up gradation in some features and the new iPhone is ready to jump in the market. But the process doesn’t end after launching one has to maintain the supply in the respect to the demand and none of us is unaware of how huge the demand is for Apple’s latest phone or any other gadget from Apple.
Now the Apple is officially disclosed that Company is going to have scarcity in supply for Chip. The global Chip shortage in the market. The target to produce 90 million Units in a month will not be met in time. The report said Apple told its manufacturers that the number of units would be lower because chip suppliers including Broadcom Inc and Texas Instruments are struggling to deliver components.
Shares of Apple fell 1.2% in after-hours trading, while Texas Instruments and Broadcom were both down about 1%.
Before the crunch, Apple’s share and market valuation were strong with 2.4 trillion. But at the right moment, it starts to decline cause of the global shortage. Apple who has a face in the market will now lack the trust of investors and consumers, the consumers will shift to another brand due to shortage and their enthusiasm for this and the next Apple phone will also pale. And this Chip crunch will also leave effects on the next phone of apple.
Jeff Fieldhack, research director for Counterpoint Research, said the reported Apple production cut could also be part of the iPhone maker’s normal launch process of over-ordering devices to be prepared for an initial customer rush and then trimming orders as sales trends become clearer.
Fieldhack said iPhone 13 sales appear to be healthy and higher than last year’s iPhone 12, and Counterpoint is not changing its estimate of 85 million to 90 million iPhone 13 sales for the fourth quarter.