Foxconn, the world's biggest electronics contract manufacturer, also said it expects its October-December consumer electronics revenue to decline on year, citing the component shortages that the industry has been grappling with, reports The Wall Street Journal.
Tech giant Apple has been dealing with the chip shortage for the past several quarters, but it only started significantly impacting Apple's business in the most recent quarter.
The shortage of specific components and production constraints related to the ongoing public health crisis have impacted iPhone, iPad, Apple Watch and Mac availability, citing WSJ, MacRumors reported.
Apple said that this past quarter, the shortages cost it $6 billion and it expects the impact to be even more significant for the holiday season.
Foxconn is Apple's largest supplier for the iPhone, and while some reports suggest that production is improving, it's still a length away from being entirely normal, the report said.