iPhone chip shortage effects Apple shares

By Ahmad Alsayouf, Staff Reporter, The Pawprint

Apple’s stock fell on Tuesday after it was reported that the company may reduce its iPhone 13 manufacturing plans due to a global computer chip shortage. Bloomberg said that Apple expects to produce 90 million iPhones in the final quarter of 2021. According to the business journal, Apple is now having to notify its partners that the total would be reduced by up to 10 million devices. On the announcement, Apple shares slid 1.2 percent in after-hours trade.

Smartphone manufacturers, such as Apple, which is one of the world’s largest chip buyers, have been badly affected, as have other industries such as the car industry and video game console manufacturers. Apple CEO Tim Cook warned investors in July that a chip shortage might hurt iPhone and iPad sales.