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According to a new report, Apple has significantly reduced production of its iPad line in recent months to provide scarce components for the iPhone 13, suggesting that the global chip shortage is having a greater impact on Cupertino than previously thought.
Citing sources familiar with the matter, reported Nikkei Asia now reports that iPad production over the past two months has been 50 percent below Apple's planned output. But Cupertino is not only cannibalizing the iPad but is also turning to older iPhone models to serve the increasingly hungry iPhone 13 supply chain. Like other companies, Apple's core hardware platforms use a number of common chips, including "legacy nodes" such as modems and power management silicon. Despite its superior purchasing power and preferential business agreements, Apple is apparently vulnerable to the effects of the global chip crisis and, according to the report, has reallocated these components to keep iPhone 13 assembly plants running.
iPhone 13: Delivery bottlenecks cost Apple $6 billion
The tech giant reportedly took a similar approach last year - slowing iPad manufacturing to increase iPhone 12 inventory. Apple's prioritization of the iPhone 13 over the iPad is in part due to internal forecasts that predict stronger demand for the smartphone in Western markets as the COVID-19 pandemic subsides, sources said. The change has resulted in some buyers of new iPads and iPad minis having to wait several weeks for delivery, depending on region, configuration and order date. During a conference call, CEO Tim Cook said supply chain issues cost Apple $6 billion in the fourth fiscal quarter of 2021, adding that ongoing issues are expected to have an even greater impact in the coming quarter. Despite the supply bottlenecks, Apple is on track to post record revenue in December, Cook said. (Image: Apple)
