Apple Cuts IPad Production To Meet Chip Needs For IPhone 13

The production of the iPad from Apple is temporarily trimmed to meet the need for chips for the iPhone 13. (photo; doc. unsplash)

JAKARTA - Apple Inc has reduced production of its iPad tablet to allocate more components to the iPhone 13. According to a Nikkei report on Tuesday, November 2 citing various sources, the move marks a sign of a global chip supply crisis that has hit Apple harder than previously indicated. .

iPad production has been down by half from Apple's original plan over the past two months, the newspaper said on its website. They also added that spare parts destined for older iPhones were also transferred to the iPhone 13.

Apple has weathered the supply crunch better than many other companies due to its large purchasing power and long-term supply agreements with chip vendors, which ate up its rival's market share in the phone and tablet space in the third quarter.

However, Apple boss Tim Cook warned the impact of supply constraints would be worse during the current holiday sales quarter and chip shortages have now affected most of their products.

The iPhone maker is prioritizing production of its flagship iPhone 13 in part because it expects stronger demand for this type of phone than the iPad as Western markets begin to emerge after the pandemic, the Nikkei said, citing unnamed sources.

In addition, the vacuum created by Huawei's exit from the market has shifted demand to players including Apple in China, which helped the company's sales in the last quarter. Apple posted a staggering 83% annual sales growth in China during the quarter.

The iPhone business, Apple's largest, grossed about $192 billion last year. The iPad business, which dominates the tablet space with more than a third of the global market share, generates nearly $32 billion. But Apple did not immediately respond to a Reuters request for comment on the matter.