Apple reduces production of iPhone 13 amidst chip shortage

After facing an energy crisis, now the world is going through a chip shortage. This shortage has compelled many companies to stop their production or limit the number of units they'll be producing. Now it's time for Apple to do the same. An insider told the media that Apple is looking to cut down production of iPhone 13 by a massive number; as huge as 10 million units. This decision has come after major chip producing companies announced that they cannot continue their regular supply to big companies due to chip shortage. 

There are many reasons behind this huge shortage in chips across the world. One of the biggest reasons is of course, COVID-19 pandemic due to which many factories were shut for months without any production. This caused a gap in the production of these chips. Another reason behind this is the rising tension between America and China. This has caused many American tech companies to haul their production. Also many big companies, after resuming their production, decided to stockpile huge orders of chips. This has played a crucial role in the usual chip supply across the world. The stockpiling was done because many companies didn’t anticipate that their sales would bounce back at such a high rate after the pandemic. This sudden increase in sales resulted in an increased production for which many chips were required. That’s why many companies rushed to secure their stock of chips early on so that they won’t have to stop their production.