Apple Had to Cut Ipad Production to Produce More iPhones 13
Nikkei Asia reports that Apple produced 50 percent fewer tablets in September and October 2021 than it had intended. According to Nikkei sources, the U.S. company was forced to allocate more of its chips stocked for the iPad to the release of the iPhone. Since Apple’s tablets and smartphones share some of the same chips, this approach helps Apple do business during a crisis in chip production.
Nikkei Asia argues that releasing enough iPhones 13 is more important to Apple than releasing iPads for two reasons. First, the iPhone 13 recently went on sale and there is strong demand for the model in the fall. Second, demand for smartphones is expected to increase because of the gradual economic recovery in the EU and the U.S. after the recession caused by the coronavirus, and these markets generate 66% of Apple’s sales revenue.
Brady Vaughn, a technical analyst at Counterpoint Research, shared his views on Apple’s situation with Nikkei Asia. According to him, it is natural for the U.S. company to favor the iPhone because it is its key product, and its production volumes are up to 200 million units per year. Few people will buy an Android tablet if the iPad is temporarily unavailable, says Brady Vaughn, but people can buy an Android smartphone if the iPhone isn’t in stores.
We should add that in 2020, Apple has already used some components stocked for the production of the iPad to produce the iPhone 12.