Apple's share price fell on Tuesday after reports indicated that it might not be able to reach its expected production targets for the last quarter of 2021. The company's stock fell by 1.2% on the news.

Sources familiar with the matter said that the ongoing global computer chip shortage may force Apple to miss its initial target of producing 90 million iPhones for the fourth quarter. This may affect its sales, particularly during the gift-giving holiday season.

Sources said Apple had to tell its partners that it would be lowering its production target for the quarter by as much as 10 million units due to the lack of chip supply. This will likely hamper its ability to meet the demand for its recently launched iPhone 13 line-up, which includes a new iPhone mini, iPhone 13 Pro, and iPhone 13 Pro Max.

In July, Apple CEO Tim Cook had warned investors that the global chip shortage may affect the sales of its new devices, including its new iPhones and iPad tablets.  

Semiconductor manufacturers Texas Instruments and Broadcom also saw their share prices dip by as much as 1% as reported emerged that they were also having problems securing chip components.

Apart from smartphone and semiconductor manufacturers, the ongoing chip shortage has also affected companies in multiple industries that rely on computer chips and components. This includes companies in industries such as the automotive sector and those that manufacture consumer electronics.

Analysts at Wedbush estimate that due to the shortage Apple may fall short of producing as much as 5 million iPhone 13 smartphones during the upcoming holiday season. This could become an issue if consumer demand continues its current pace, resulting in a lack of supply of the devices globally.

However, analysts said that the slight shortfall may not be a big issue in the short term as Apple will likely be able to catch up with the demand next year.

"Taking a step back, 5 million to 10 million units moving out of the December quarter into the March quarter due to well-understood supply chain issues is not a worry for us," analysts at Wedbush said.

Analysts said that the news of Apple missing its production target by a few million may just be a "speed bump" in the company's product cycle.