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IPhone 13 maker warned of production cuts



Apple’s contract manufacturer Foxconn said shipments of its devices could be cut by 10% due to the ongoing global shortage of chipsets. That said, Foxconn chairman Liu Yangwei said the company is “cautiously optimistic” about the outlook for the rest of the year.

Foxconn is responsible for assembling iPhone smartphones. Although Foxconn did not explicitly say that Apple could be hurt, the Cupertino-based company is Foxconn’s largest customer. Foxconn expects chip shortages to continue into the second quarter of 2022. Apple has far more resources than other manufacturers, but the company could still face problems if chip shortages persist.

In mid-March, the first reports emerged that Apple was hit by a global shortage of semiconductor products, amid which the iPhone product line could face a production halt.

The chip shortage situation has spread from the automotive industry to many industries. Smartphone makers have confirmed that there is a shortage of chips this year, and now many manufacturers have to cut production to cope with the crisis.


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