Apple has sharply reduced production of iPads, choosing to reallocate chips and other components to supplyproduction, according to Nikkei Asia report published Tuesday.
Citing multiple sources, the report says iPad output has been cut by 50% over the past two months. The iPhone and iPad share similar parts including core and peripheral chips, but Apple tends to prioritize the iPhone since as it’s a top revenue driver for the company, much more so than the iPad.
This is one of the latest examples of how Big Tech has been impacted by coronavirus-driven disruptions to the global supply chain, which is a complex network of vessels, vehicles and aircraft that work to make sure shoppers around the world receive their purchases including iPhones, household goods, cars and clothing.
In a, Apple CEO conceded that due to supply constraints the company had missed out on revenues to the tune of $6 billion before adding that it’s still on track to to set new sales records during the key holiday shopping season, which follows the release of its iPhone 13, new iPads, Apple Watches and Mac computers.
Apple didn’t immediately respond to a request for comment.