Apple slashes iPad production to meet iPhone 13 demand

Apple in recent months severely slashed production of its iPad lines to dole out scarce components to iPhone 13, according to a report Tuesday, suggesting that the global chip shortage is having a greater impact on Cupertino than previously suspected.Citing sources familiar with the matter, Nikkei Asia reports iPad production was down 50% from Apple’s planned output for the past two months, a knock-on effect of shifting chips bound for the tablets to flagship iPhone 13 handsets. In addition to cannibalizing iPad, Apple is also reaching into older iPhone production lines to sate an increasingly thirsty iPhone 13 supply chain.Like other companies, Apple’s major hardware platforms share a number of common chips including “legacy nodes” like modems and power management silicon. Even with its outsized buying power and preferential business arrangements, Apple is apparently susceptible to fallout from the global chip crunch and, according to the report, reallocated these parts to keep iPhone 13 assembly facilities humming. Reports last year suggested the tech giant did much the same — iPad manufacturing was decelerated to boost iPhone 12 inventory. Read more…
Go to Source
Author: