Apple cut production of the iPad in order to allocate chips for the iPhone 13. This policy indicates that the impact of the global chip crisis felt by Apple is greater than previously estimated.
According to a Nikkei report citing two sources, iPad production in the last two months fell by 50% compared to the original plan. In addition to the iPad components, some components for older iPhones were also transferred to the iPhone 13.
The iPad and iPhone do share some of the same components, including the main chip and peripherals. This allows Apple to switch supplies between the iPad and iPhone if needed.
The reason Apple is prioritizing the production of the iPhone 13 is because they expect iPhone demand to be higher than that of the iPad. Especially now that markets in America and Europe are starting to rise from the Corona virus pandemic.
Even so the demand for the iPad in the past year has remained high thanks to the necessity of studying and working from home. According to IDC data, Apple shipped 40.3 million iPads in the first nine months of 2021, up 17.83% from the same period in 2020.
Because the production of the iPad is cut, consumers who have ordered this tablet have to wait longer to get the device. For example, for consumers in America and Europe who have ordered the new iPad mini, their device will only ship in early December 2021.
According to an analyst from Counterpoint Research Brady Wang, Apple's move to prioritize the iPhone over the iPad in the midst of a shortage of components is something that makes sense. Moreover, Apple is the ruler of the tablet market today.
"Few users will switch to an Android tablet if they want to buy an iPad but have to wait longer. However, there is a possibility that someone could switch to an Android phone if they can't buy an iPhone quickly," Wang said, as quoted by Nikkei, Wednesday. (3/11/2021).
The Nikkei report also corroborates the projections of Apple's CFO Luca Maestri. In Apple's latest financial report, Maestri said revenue from the iPad for the October-December period is expected to decline due to component supply problems.
This isn't the first time Apple has prioritized the iPhone over the iPad. In 2020, they allocated several iPad components for the iPhone 12 so that their main device would not be affected by supply chain disruptions during the COVID-19 pandemic.
