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Apple cuts iPad production to use chips for iPhone 13: report

Apple has cut production of iPads in order to allocate more components for the iPhone 13, a sign that the global chip supply crisis will hit Apple harder than previously indicated, Nikkei said Tuesday, citing multiple sources.

IPad production has dropped by half from Apple’s initial plans for the past two months, the newspaper said on its website, adding that parts meant for older iPhones are also being transferred to the iPhone 13.

While iPhone 13 production has stalled due to factory closures in Asia and strong demand in the second half of the year, Apple has weathered the supply decline better than many other companies, thanks to its huge purchasing power and long-term chip supply agreements. suppliers eating up the market share of their competitors in the third quarter.

The iPhone maker is prioritizing the release of the iPhone 13 in part because it predicts higher demand for the smartphone than the iPad as Western markets begin to emerge from the pandemic, Nikkei said, citing unidentified sources.

Apple did not immediately respond to Reuters’ request for comment.

© Thomson Reuters 2021



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