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Apple’s earnings are heavily reliant on sales of its flagship iPhone device.
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Supply-chain disruptions have wrought havoc on Apple’s ability to produce new iPhone 13s, with production falling 20% short of plans in September and October, according to a report from Nikkei Asia on Wednesday.
Shortfalls in iPhone 13 production in the critical period leading up to the holiday season came even as Apple (ticker: AAPL) prioritized components for the latest version of its flagship device, which is its most important source of revenue, the report said.
Production of the iPad was hit even worse, with volumes around 50% lower than planned as shared components were reallocated, according to the report, which cites multiple anonymous sources and on which Apple declined to comment.
Apple didn’t immediately respond to a request for comment from Barron’s.
Production forecasts for older generations of iPhones fell by 25%, Nikkei Asia added, as Apple found its electronics supply chain in turmoil, with some problems related to tensions between the U.S. and China over critical technology predating the pandemic.
A power crisis in China, which led to halts in factory production, contributed to iPhone and iPad assembly stopping for several days for the first time in more than a decade at the beginning of October, Nikkei Asia reported.
The widespread supply-chain issues have forced the tech giant to scale back its total goal for production in 2021, the report said. At the beginning of December, Apple was on track to produce 10 million to 12 million less iPhone 13 units than the 95 million it had previously planned to make before the end of the year.
Apple shares rose 0.4% in premarket trading Wednesday.
Write to Jack Denton at jack.denton@dowjones.com
