Apple Inc (AAPL.O) has reduced iPad tablet manufacturing in order to assign more components to the iPhone 13, according to Nikkei on Tuesday, citing various sources, indicating that the worldwide chip supply crunch is affecting Apple more severely than previously thought.
For the previous two months, production of the iPad has been half of Apple’s original projections, according to the newspaper’s website, with parts designated for older iPhones also being diverted to the iPhone 13.
Apple has weathered the supply crunch better than many other companies due to its massive purchasing power and long-term supply agreements with chip vendors, eating into its rivals’ market share in the third quarter, despite iPhone 13 production hitting a snag due to factory closures in Asia and high demand in the second half of the year.
According to Nikkei, which cited unidentified sources, the iPhone maker is prioritizing iPhone 13 production in part because it expects better demand for the smartphone than for the iPad as Western markets begin to recover from the pandemic.
