The crisis forces Apple to make fewer iPads to have enough iPhone 13

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We have already told it today in this news about the notice that a chip manufacturer has given about the more than possible stock breaks for this Christmas of devices and other electronic products. And if the lack of stock of PS5 and Xbox Series X are not enough of an example, the latest (and forced by circumstances) measure that Apple has had to take does represent the crisis well.

Fewer iPads to make more iPhones

According “multiple sources” have told the Nikkei Asia mediumApple has drastically cut iPad production to put more components into the iPhone 13, a sign that the global chip supply shortage is hitting the company harder than it had previously indicated. And it is that according to the sources, iPad production dropped by 50% from Apple’s original plans for the past two months, adding that parts intended for older iPhones were moving to iPhone 13 as well.

Because the iPad and iPhone models have a number of components in common, including core chips and peripherals, Apple may move supplies between devices in certain cases. For this reason, the company is prioritizing the production of the iPhone 13 according to these sources, in part because it anticipates a higher demand for the smartphone than for the iPad as Western markets begin to emerge from the coronavirus pandemic – Europe and America account for 66 % of Apple’s revenue.

Strong demands from the iPad

The sales peak of the new iPhone too It is produced within a few months of its launch, so ensuring smooth production for the iPhone 13, which went on sale on September 24, is a top priority for Apple right now. Demand for the iPad, however, has also been robust thanks to increased work and distance learning amid the pandemic.

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Worldwide shipments of iPads increased 6.7% in the year to reach 53.2 million devices last year, securing a global market share of 32.5%, well ahead of 19.1% of the number two. , Samsung, according to IDC data. Total iPad shipments were 40.3 million in the first nine months of this year, 17.83% more than in the same period last year.

It has happened before

It is not the first time that Apple has prioritized iPhones over iPads. Just last year, in the middle of 2020 pandemic, those of Cupertino They reassigned some parts of the iPad to the iPhone 12, their first full range of 5G phones, for example.To protect your most iconic product from supply chain constraints during the COVID-19 pandemic. This time, “Buyers are facing significant wait times for new iPads.”

In America or Europe, those who ordered an iPad with 256GB of storage at the end of October they will have to wait until December 15 for delivery, according to Apple’s website. For those who order the latest iPad mini, delivery will be around the first week of December. Consumers in China, Apple’s third largest market, will also have to wait up to six weeks to get a new iPad.

Apple already recognized it

Apple has recognized the impact of global supply constraints. Chief Financial Officer Luca Maestri said in a recent results briefing that iPad revenue for the October-December quarter is going to drop due to component limitations, adding that this is the only product that is expected to see a decline.

CEO Tim Cook also noted that July-September revenue was $ 6 billion less than they would have been due to “Industry-wide silicon shortages and COVID-related manufacturing disruptions. The impact for the current quarter could be even greater.”

According to Brady Wang, Technology Analyst at Counterpoint Research at Nikkei: “The scale of iPhone shipments, of about 200 million units a year, is much larger than that of iPads. Apple’s most important and critical ecosystems surround iPhones, its iconic product. As if that were not enough, iPads do not have that strong seasonality that their flagship iPhones have, which are always released in the fall.

“There will be fewer users switching to Android tablets if they are thinking of buying an Apple iPad but have to wait a bit longer. However, there is a chance that people will go for … Android phones if they can’t buy. immediately an iPhone. “


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