Apple has opted to slash the production of its iPads in order to increase the chip supply for the newly launched iPhone 13 series. To ensure faster delivery times, the company had to increase the chip supply for iPhone 13 by cutting short on iPads. This looks like an appropriate move from the company since the demand for iPhones will always be more than the iPads. Particularly for the iPhone 13 series, which is priced the same, the demand is high but the supply is short.
The Reason for Slashing iPad Production
According to a Nikkei Asia report, Apple has cut short on iPads production by a whopping 50% of what was initially planned for the last couple of months. The vigorous rise in demand for the iPhone 13 series around the globe led to the decision of slashing the production of iPads in order to provide chips and other components for the iPhone 13. However, it also proves the fact that the company uses a lot of similar components for its devices across formats. The option to utilize the same components for different products allows Cupertino-based giant to keep their production going by shifting from one product to another while the world suffers from a semiconductor shortage. The demand for iPhone 13 has been rather stronger than what was expected compelling the company to shift on the production of the iPhone 13. On the other hand, the demand for iPads is not less either. But this step has led to increasing in delivery time of the latest iPhone 13 which hints towards the improving supply chain. The lead time for the latest iPhone 13 mini and iPhone 13 which is the total time taken since the start of the production to the conclusion around the globe is around 12 and 13 days respectively. On the other hand, iPhone 13 and iPhone 13 Pro Max which usually took 37 days of lead time are now down to around 32 days. This initiative might have improved the total production time of Apple products but the last generation series iPhone 12 had a rather faster lead time as compared to what it is now.
