Apple Slashes IPad Production To Supply Chips To IPhone 13, Report Says
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Apple slashes iPad production to supply chips to iPhone 13, report says
If you recently ordered any of Apple's new iPads, don't be surprised if the wait time before it arrives at your doorstep gets longer.
That's because Apple has sharply reduced production of iPads, according to Nikkei Asia report published Tuesday, instead choosing to reallocate chips and other components to supply iPhone 13 production.
Citing multiple sources, the report says iPad output has been cut by 50% over the past two months. The iPhone and iPad share similar parts including core and peripheral chips, but Apple tends to prioritize the iPhone since as it's a top revenue driver for the company, much more so than the iPad.
Apart from being a best seller for Apple, "iPhones do much more for Apple in terms of ecosystem lock-in, especially with the stickiness of iMessage." Bryan Ma, the vice president of devices research at IDC said to CNET in an email. "And as more countries exit the pandemic, more consumer time will be spent outside with phones rather than at home on tablets."
This is one of the latest examples of how Big Tech has been impacted by coronavirus-driven disruptions to the global supply chain, which is a complex network of vessels, vehicles and aircraft that work to make sure shoppers around the world receive their purchases including iPhones, household goods, cars and clothing.
In a recent earnings call, Apple CEO conceded that due to supply constraints the company had missed out on revenues to the tune of $6 billion before adding that it's still on track to to set new sales records during the key holiday shopping season, which follows the release of its iPhone 13, new iPads, Apple Watches and Mac computers.
Apple didn't immediately respond to a request for comment.
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