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Apple Prioritizes Production Of iPhone 13 Over iPad Amid Global Chip Crunch

By John F. Heerdink, Jr.

As per reports, Apple (AAPL) is reducing the production of iPad tablets to allocate more components to its iPhone 13, implying the global chip supply crunch is hitting Apple harder than previously reported.

The iPhone maker is prioritizing the production of its iPhone 13 output in part because it forecasts stronger demand for the smartphone than for the iPad as Western markets revive from the pandemic. iPad production was down by half from Apple’s original plans for the previous two months, however, Apple is dealing with the supply crunch better than many other giants due to its long-term supply agreements with chip vendors and massive purchasing power. Also, 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 reported a staggering 83% annual sales growth in China during the quarter.

Tim Cook, Apple’s CEO warned of the worse impact of supply constraints during the current holiday sales quarter as the chip shortage is now affecting most of the company’s products. 

Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it. To learn more about Apple (AAPL) and track its ongoing progress at Vista Partners Apple (AAPL), Coverage Page.

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(Read Original Story: UPDATE 2-Apple cuts iPad production to feed chips to iPhone 13 -Nikkei in Reuters)


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