Apple has warned its parts suppliers (3M Co., Broadcom Inc. and Advanced Micro Devices Inc.) that demand for the iPhone 13 has slowed, pointing out that some consumers have decided against a hard-to-find device, according to sources close to the company.
Previously Apple had slowed production of the iPhone 13 by about 10 million units, all because of the worldwide chip shortage, and now it has informed vendors that orders placed for the device may not be filled.
A worldwide chip crisis, initially due to the high demand for smartphones and personal gadgets during the coronavirus pandemic, has affected the automotive industry and disrupted production at companies.
In October, Apple Chief Executive Tim Cook warned that the impact of supply constraints, which cost the company $6 billion in sales in the fiscal fourth quarter, would be worse during the vacation quarter and that chip shortages were affecting most of the company's products.