U.S. markets close in 1 hour 18 minutes
  • S&P 500

    4,587.28
    +20.28 (+0.44%)
     
  • Dow 30

    34,525.75
    +42.03 (+0.12%)
     
  • Nasdaq

    15,533.80
    -3.89 (-0.03%)
     
  • Russell 2000

    2,190.10
    -8.81 (-0.40%)
     
  • Crude Oil

    65.87
    -0.31 (-0.47%)
     
  • Gold

    1,782.00
    +5.50 (+0.31%)
     
  • Silver

    22.26
    -0.50 (-2.22%)
     
  • EUR/USD

    1.1321
    -0.0018 (-0.16%)
     
  • 10-Yr Bond

    1.4480
    +0.0050 (+0.35%)
     
  • GBP/USD

    1.3281
    -0.0020 (-0.15%)
     
  • USD/JPY

    112.8220
    -0.3580 (-0.32%)
     
  • BTC-USD

    57,604.29
    +5.17 (+0.01%)
     
  • CMC Crypto 200

    1,471.84
    +2.76 (+0.19%)
     
  • FTSE 100

    7,168.68
    +109.23 (+1.55%)
     
  • Nikkei 225

    27,935.62
    +113.86 (+0.41%)
     

Apple Likely to Slash 2021 iPhone Production Targets — Report

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

California-based Apple, Inc. (AAPL) is expected to cut its 2021 iPhone 13 production guidance by up to 10 million units due to the shortage of components, Bloomberg said in a report, citing people familiar with the matter.

The company had projected to manufacture 90 million models of the new iPhone in the fourth quarter. However, it now expects a lower number as its suppliers, Texas Instruments Inc. (TXN) and Broadcom Inc. (AVGO), are unable to provide the required number of components.

Texas Instruments supplies display parts to Apple, while the tech giant gets wireless components from Broadcom. One chip that Texas Instruments supplies for the latest iPhones is in short supply. This chip helps in powering the OLED display of the phones.

Moreover, Apple’s other suppliers are also struggling to provide enough components. (See Top Smart Score Stocks on TipRanks)

Shares of the company closed 0.9% lower on Tuesday. The stock slipped another 0.6%, at the time of writing, in the early trading session on Wednesday.

Last week, UBS analyst David Vogt reiterated a Buy rating on the stock with a price target of $175 (23.7% upside potential).

The analyst said, “The highly publicized broad supply chain headwinds have raised the concern that the elevated iPhone wait times are the result of part shortages rather than strong underlying demand.”

Overall, the stock has a Strong Buy consensus rating based on 19 Buys and 6 Holds. The average Apple price target of $169.41 implies 19.7% upside potential. Shares have gained nearly 17% over the past year.

According to TipRanks’ Smart Score rating system, Apple scores a 9 out of 10, suggesting that the stock is likely to outperform market averages.

Related News:
Pinnacle Financial Exceeds Q3 Expectations; Shares Jump 2% After-Hours
Fastenal Posts Solid Q3 Results; Shares Rise 3%
International Paper Increases Share Buyback Program by 2B, Slashes Quarterly Dividend

More recent articles from Smarter Analyst: