Asian Tech Press — (Nov 2) Apple Inc has reportedly cut iPad production by 50% to provide more chips for its latest smartphone product iPhone 13.
The U.S tech giant has sharply cut iPad production to allocate more components for the iPhone 13, suggesting that global chip shortages have been hitting Apple harder than previously expected, the Nikkei reported Tuesday, citing multiple sources.
In the past two months, iPad production has been cut by 50% from Apple’s initial plan, and parts for older iPhone models are being shifted to the iPhone 13, sources said.
The iPad and iPhone models have many components in common, including core and peripheral chips, which allows Apple to transfer components between devices in some cases.
And the sources noted that Apple is prioritizing production of the iPhone 13, likely because demand for the smartphone will outpace the iPad as Western markets begin to emerge from COVID-19, with Europe and the Americas accounting for 66% of Apple’s revenue.
This is not the first time Apple has prioritized the iPhone over the iPad. In 2020, the company reallocated some iPad components to the iPhone 12 series to protect its most iconic product from supply chain constraints during the pandemic.