Apple has drastically cut production of the iPad in order to redirect dedicated chips for the iPhone 13, writes Nikkei Asia. It's a sign that the global chip supply crisis has hit the company even harder than it previously indicated.
The iPad and iPhone models share a number of common components, including core and peripheral chips. This allows Apple, in certain cases, to redistribute the flow of spare parts between devices. Sources say that iPad production is down 50% from Apple's original plans over the past two months, as the company is doing this so that chips designed for tablet production can be used to make new iPhone models.
As Nikkei Asia explains, the company is prioritizing the release of the iPhone 13 in part because it predicts higher demand for smartphones than for tablets - the company reminds that Western markets are beginning to emerge from the coronavirus pandemic. Europe and America account for 66% of Apple's revenue. In addition, sales of new iPhones also peak within a few months of release, so ensuring the smooth production of the iPhone 13, which was released on September 24, is a top priority for Apple right now.
Demand for the iPad in 2020-2021 was strong thanks to the rise of remote work and learning. In total, 40.3 million iPads were sold in the first nine months of this year, up 17.83% over the same period last year. Global shipments of tablets in 2020 amounted to 164.1 million units (+13.6%).
According to the publication, the reduction in iPad production in order to release new iPhones will lead to the fact that buyers around the world will face significant waiting times for the company's new tablets. In the Americas or Europe, those who ordered a 256GB iPad at the end of October will have to wait until December 15th, according to Apple's website. Consumers in China, Apple's third largest market, must also wait up to six weeks to get a new iPad.