Apple has reduced production of iPad tablets to allocate more components to the iPhone 13, a sign that the global chip crisis is hitting Apple harder than previously thought, the Nikkei wrote on Tuesday, citing multiple sources.
iPad production has halved over the past 2 months compared to Apple's original plans, the Nikkei publication said, adding that parts for older iPhones have also been redirected to the iPhone 13.
Apple is prioritizing iPhone 13 production as it forecasts higher demand for smartphones than iPads as Western markets begin to emerge from the pandemic.
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Even though iPhone 13 production has hit major issues, Apple has managed the chip and component crisis better than many other companies thanks to its massive buying power and long-term supply agreements. The company posted better numbers than rivals in the third quarter, Reuters reports.