Apple may cut iPad production to feed chips to iPhone 13

Apple has cut production of iPad tablets to allocate more chip components for manufacturing iPhone 13, Nikkei reported.
Apple iphone 12 5G smartphone in SingaporeApple had said it generated sales of $38.86 billion from iPhones and $8.25 billion from iPads during the July-September quarter of 2021.

Research firm Canalys estimates that Apple shipped 15.23 million units of iPads and 49.2 million units of iPhones during the July-September quarter of 2021. Apple is the #1 tablet maker and the #2 smartphone maker in the world.

Production of the iPad was down half from Apple’s original plans for the past two months. Parts intended for older iPhones were also being switched to the iPhone 13.

Though iPhone 13 production hit a snag due to factory closures in Asia and high demand in the second half of the year, Apple has weathered the supply crunch better than many other companies due to its massive purchasing power and long-term supply agreements with chip vendors, eating into its rivals’ market share in the third quarter.

The iPhone maker is prioritising iPhone 13 output in part because it forecasts stronger demand for the smartphone than for the iPad as Western markets begin to emerge from the pandemic, the Nikkei report said.