Apple reportedly cuts iPad production by 50% to ensure components for the iPhone 13

Apple reportedly cutting iPad production by 50% to ensure components for the iPhone 13
The global chip shortage has been affecting the entire mobile tech industry and Apple has been among the potentially affected tech giants. Now, 9to5Mac reports that, according to industry sources, Cupertino has decided to cut back the iPad production in order to save components for the iPhone 13 series.

Apple reportedly cuts iPad production in favor of the iPhone 13 series

The global chip shortages have affected Apple and other tech giants, and because of the situation, products like the new and powerful iPhone 13 series or the Apple Watch Series 7 have low supplies around the world, shipments of orders get delayed. In order to try to mitigate the issue, Apple has reportedly cut some of the iPad production to save components for the iPhones.

According to sources, Nikkei Asia has reported that Apple has "cut back sharply" on iPad production because of the global chip shortage, in an attempt to have enough components for the iPhone 13 series. Reportedly, Cupertino wants to increase iPhone shipments, and the iPad has a lower demand than the iPhone.

iPad production has reportedly been cut by 50%, and production of older iPhone models has also been reduced, prioritizing Apple's newest flagship series. Some of the components for the iPhone 13 are shared in these devices.

Currently, the demand for Apple's latest products has increased. Although the iPhone is Apple's main priority, iPad sales are far from being weak and this year, the company has shipped 40.3 million units so far.

As you might imagine, Apple cutting back on the production rate means you will have to wait longer to receive your iPad order, if you have one. Currently, the shipping estimate for some of the iPad models is now postponed to mid-December, but it could slip even further. Analysts stated that the global chip shortage may continue for the next year, so buyers will need to potentially get used to the long shipping times for Apple products and those of other tech giants.

Apple recently urged people to "shop early"

As the holiday season is approaching, people are looking for getting gifts for their family and for themselves. Recently, we reported on the fact that Apple is advising on their website that customers can shop early, probably in an attempt to have these orders arrive before the holidays. Additionally, Cupertino has extended the return deadline and any products, purchased from Apple from November 1 through December 25 will have a return date of January 8, 2022.

This policy applies to the US, UK, Canada, Australia, New Zealand, Germany, and a few other markets. Understandably, purchases done after December 25th will have the regular return policy which is 14 days after receiving the item.

Chip shortage has indeed affected Apple's sales

Apple's sales have fallen short of the estimated $6 billion of revenue due to the chip shortages that have impacted the entire industry. For the first time in five years, the company has fallen short of estimated revenue in any given category. Tim Cook stated earlier that Apple is having a very strong performance despite the expected supply constraints and despite the component shortages.

However, according to Apple's CEO, the chip-related production delays are causing the tech giant to fall behind the $6 billion dollars in initially estimated revenue.

Despite these results though, the company is still experiencing growth in shipments over the years. Apple has continued to see significant growth year-on-year in almost every category, with an annual revenue jump of 33% from 2020, cashing in at $366 billion in Q4 of 2021.

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The categories that are seeing growth are Apple's services department (26% growth for all software services the company is offering), and iPads (21% growth from last year).

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