Apple Reduces iPad Production, Redirects Chips to iPhone 13
Published : Tuesday, 02 November, 2021
Apple is cutting back iPad manufacturing, seeking to direct in-demand components to iPhone 13. This is a certain sign of a global chip shortage that may have a greater impact on Apple than may have been forecasted.iPad production was cut down by 50% compared to Apple's initial plans in September and October, and components intended for older iPhone gadgets were also being funneled to manufacture the iPhone 13 devices, say industry experts.
iPhone 13 production may have been stalled by Asian factory closures and high demand in the second half of 2021, yet Apple has dealt with the supply crunch more successfully than most other manufacturers. That was made possible by its significant purchasing power and long-term supply agreements with chip vendors, which allowed it to sink its teeth into its rivals' market share in Q3.
Apple is prioritizing iPhone 13 production partly because it predicts a greater demand for the smartphone than for the iPad as the West begins to come out of the pandemic.
Apple is not yet commenting on the situation.
Source