Apple told its parts suppliers that demand for the iPhone 13 line has waned, Bloomberg reported on Wednesday, citing people familiar with the matter.
The company has cut production of the iPhone 13 by as much as 10 million units, down from its target of 90 million, due to a global shortage of chips, but has now informed suppliers that even those orders may not come through, the report said.
The holiday season is Apple’s biggest quarter in terms of revenue and a test of consumer interest in the company’s latest iPhones and MacBooks.
Analysts had expected demand to remain virtually flat for new products, but have lowered estimates as supply chain problems burdened manufacturers, with many retail partners warning of product shortages ahead of the holiday shopping season.
Apple Chief Executive Tim Cook warned in October that the impact of supply restrictions, which cost the company $6 billion ($33.6 billion) in sales in the previous quarter, will be worse this year.
Apple and its vendors 3M, Broadcom and Advanced Micro Devices did not immediately respond to requests for comment.
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