Money - International
Report: Apple cuts iPad production to feed chips to iPhone 13
Apple CEO Tim Cook unveils the new iPhone 13 during a special event at Apple Park in Cupertino, California broadcast September 14, 2021. u00e2u20acu201d Handout by Brooks Kraft/Apple Inc via Reuters

SAN FRANCISCO, Nov 2 ― Apple Inc has cut back production of iPad tablets to allocate more components to the iPhone 13, a sign the global chip supply crunch is hitting Apple harder than previously indicated, Nikkei said today, citing multiple sources.

Production of the iPad was down half from Apple's original plans for the past two months, the newspaper said on its website, adding that parts intended for older iPhones were also being switched to the iPhone 13.

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Even though iPhone 13 production hit a snag due to factory closures in Asia and high demand in the second half of the year, Apple has weathered the supply crunch better than many other companies due to its massive purchasing power and long-term supply agreements with chip vendors, eating into its rivals' market share in the third quarter.

The iPhone maker is prioritising iPhone 13 output in part because it forecasts stronger demand for the smartphone than for the iPad as Western markets begin to emerge from the pandemic, Nikkei said, citing unidentified sources.

Apple did not immediately respond to Reuters' request for comment. ― Reuters

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