Supply chain problems and power constraints in China have had a negative impact on the business of U.S. company Apple Inc., according to the Nikkei, according to which the production of iPhone 13 in September and October fell short of targets by 20%.

Production of iPhones and iPads at a number of factories in China reportedly stopped completely in early October, at a time when they are typically running at capacity ahead of the holiday season. “Due to the limited supply of components and chips, it didn’t make sense to overwork during the holidays and overpay workers,” said one supply chain manager quoted by Nikkei.

According to him, “this has never happened before.”

Additional pressure came from disruptions at component manufacturing plants in Vietnam and Malaysia due to coronavirus-related restrictions. As a result, Apple missed out on several million new gadgets introduced in September and lost billions of dollars in potential revenue. The company set a goal of producing 230 million iPhones in 2021, but the actual number of devices produced will be less by about 15 million units, Nikkei writes.

 In November, the rate of production of new devices recovered, but the production of older models of iPhone and iPad significantly reduced, as a limited number of components were decided to use for new gadgets. Bloomberg reported in October that Apple is likely to cut its iPhone 13 production forecast for 2021 by 10 million units due to ongoing semiconductor component shortages. Apple grew revenue by 29% in the fiscal Q4 ended September 25 to a record for the period, but the figure fell short of market expectations for the first time since 2018. Sales of iPhones and wearable devices also fared worse than analysts’ forecasts. The company’s shares rose 0.8% in additional trading on Tuesday. They are up 29% since the beginning of the year.

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