Apple slashes iPad production in half, reroutes chips to iPhones: report

Apple is said to have cut production by half on its iPads and is shifting components from older iPhone models into the iPhone 13 in an attempt to combat a global shortage of chips that has already cost more than $6Billion in revenue. 

To ensure a smooth rollout of the iPhone 13, Nikkei Asia reported Tuesday that the company made production changes in September/October. 

This news comes just days following Tim Cook, Apple CEO, told investors that $6 billion in revenue was lost due to supply chain problems including the chip shortage.

“We’re doing everything we can do to get more [chips] and also everything we can do operationally to make sure we’re moving just as fast as possible,” Cook said on Thursday, adding that he expects the chip crunch to be even worse through the end of 2021.

“Apple loves all its children, but iPhone is more important than the iPad,” said Wedbush Securities managing director Dan Ives.
SOPA Images/LightRocket via Gett

Apple did not immediately respond to a request for comment regarding the Nikkei report. 

Tim Cook
Tim Cook said that he expects that the chip crunch will be worse by 2021.

This news comes as Apple customers have been experiencing longer wait times for Apple products including new iPhones, iPads, and iPads that the company announced in September. 

iPads ordered through Apple’s site on Tuesday would not be expected to arrive to a New York City address until the first week of December, according to Apple’s site. The site indicates that the new iPhone 13 Pro models will not be delivered until at most Nov. 24.  

The iPhone is Apple’s most lucrative product and typically sells best during the holiday season, so it makes sense for Apple to give the phones priority over tablets, according to Wedbush Securities managing director Dan Ives. 

“Apple loves all its children, but iPhone is more important than the iPad,” Ives told The Post.

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