Apple slashes iPad production as chip shortage bites

Apple Inc has cut back production of iPad tablets to allocate more components to the iPhone 13.

The move is seen as a sign that the global chip supply crunch is hitting Apple harder than previously indicated.

Production of the iPad was down half from Apple's original plans for the past two months, Nikkei Asia said on Tuesday.

The parts intended for older iPhones were also being switched to the iPhone 13, the report added.

Even though iPhone 13 production hit a snag due to factory closures in Asia and high demand in the second half of the year, Apple has weathered the supply crunch better than many other companies.

It is attributed to the company's massive purchasing power and long-term supply agreements with chip vendors, eating into its rivals' market share in the third quarter.

READ MORE: Apple likely to reduce iPhone 13 production – report

The iPhone maker is prioritising iPhone 13 output in part because it forecasts stronger demand for the smartphone than for the iPad as Western markets begin to emerge from the pandemic, Nikkei said, citing unidentified sources.

In 2020, it reallocated some iPad parts to the iPhone 12, its first full-range of 5G handsets, to shield its most iconic product from supply chain constraints during the Covid-19 pandemic.

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