In September and October, Apple fell 20 percent short of its goals for its iPhone 13 smartphones, it was reported by Nikkei on Wednesday. During the holiday season, the company experiences some of its busiest sales, as many consumers purchase its products as gifts.
However, as Apple scrambles to cope with the global chip shortage and supply chain disruptions as well as the iPhone 13 lineup and new iPad devices launched in September, there is a major threat looming over the company.
Reuters reported that Tim Cook, chief executive of Apple, said in October that supply chain challenges would have a greater impact on holiday sales than they had during the previous quarter.
For the first time in more than a decade, Apple’s iPhone and iPad assembly was suspended in October due to supply chain issues and power restrictions in China, Nikkei reported.
The reallocation of shared components further squeezed iPad assembly in September and October, resulting in a 50 percent reduction in production volume than planned. Nikkei said production forecasts for older generations of iPhone handsets also declined by around 25 percent.
Apple’s parts suppliers were reportedly told last week that demand for the iPhone 13 lineup had slowed, Bloomberg News reported.