Apple (NASDAQ:AAPL) is scaling back production of its signature iPhones due to a global shortage of semiconductors.
Apple says it is now likely to slash its projected iPhone 13 production targets for 2021 by as many as 10 million units.
For months, while supply chain shocks rocked the electronics and automotive industries, Apple remained the one company that could secure the chips needed to keep selling its electronic products due to its well-managed supply chain.
However, the supply-chain crisis now appears to have caught up with Apple. The company’s production cut is a sign that the supply disruptions that have wreaked havoc around the world are worsening.
Almost all major manufacturers have been impacted both by a lack of key materials such as semiconductors, but also an inability to get finished goods into the hands of consumers.
U.S. President Joe Biden is set to focus on transportation bottlenecks, with the congested Port of Los Angeles planning to operate 24 hours a day, seven days a week in order to confront the current squeeze on goods.
