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Chip shortage: Apple is allegedly reducing iPad production – for iPhones

The global shortage of chips apparently poses ever greater challenges for Apple and at the same time threatens the manufacturer’s central Christmas business. In order to have more components available for the mass production of new iPhones, Apple has allegedly cut back iPad production significantly: In September and October, tablet production was cut by 50 percent, according to the Japanese business newspaper Nikkei Asia reported on Tuesday citing informed people.

Certain chips are used in both device categories and can thus be used for the production of iPhones as well as iPads. The production of the iPhone 13 has priority, as this is where the demand is highest – especially after the introduction of a new generation of models. The smartphone business also accounts for the majority of the Group’s sales. The report of Nikkei according to Apple is also withdrawing chips from the production of older iPhone generations, which are still sold as entry-level models. The business paper notes that Apple relocated parts of iPad production to iPhone last fall.

iPad buyers have to be prepared for longer delivery times. You currently have to wait around four weeks for a new iPad mini 6 or iPad 9 if it is ordered directly from Apple. The iPad Pro 2021, which has been available for a long time, has a delivery time of around one to two weeks.

The reduced availability of new products due to the lack of chips cost Apple according to its own information in the last fiscal quarter a turnover of around 6 billion US dollars. Apple CEO Tim Cook told financial analysts last week that the decline in sales would be even greater in the Christmas business because the demand could not be met – but the group still expects a new record quarter.

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The lack of chips apparently does not affect the replenishment of new chips such as Apple’s in-house processors, but can be observed with “Legacy Nodes”. In the case of simpler microchips, one is in competition with many other companies for the already limited offer, as Cook explained – and one cannot yet foresee when there will be normal availability again. Other sectors such as the automotive industry are also massively affected by this lack of chips.

(lbe)

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