Thursday, June 20, 2024

Apple Cutting iPad Production to Keep Up with iPhone Demand

Apple is cutting iPad production in an effort to mitigate problems caused by the semiconductor shortage and keep up with iPhone demand.

The semiconductor shortage has been impacting a range of industries, especially the tech industry. While Apple’s supply chain management is legendary, even it has been struggling to keep up with demand.

According to Nikkei Asia, the company is severely cutting iPhone production and diverting components to iPhone production, since the two devices share many common components.

“The scale of iPhone shipments of around 200 million units a year is much bigger than that of iPads. Apple’s most important and critical ecosystems are all surrounding iPhones, its iconic product. To add one more point, iPads do not have that strong seasonality like its flagship iPhones, which are always launched in autumn,” Brady Wang, a tech analyst with Counterpoint Research, told Nikkei Asia.

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