Apple cut iPad production up to 50% to feed chips into iPhones
If you are fond of the Apple iPad then there is bad news for you: Apple's iPad production has seen a 50 percent drop in the past two months. Behind this fall, there is believed to be a shortage of chipset supply globally. Apple has cut production of the iPad by 50 percent in the past two months. The company is reducing the production of iPads to feed components for the new iPhone 13. Although, presently, no comment has been made regarding the issue.
A report by Nikkei Asia said that being a top revenue driver for the iPhone might be the reason behind Apple's preference for iPhone production over the iPad. According to a report by Reuters, in 2020, Apple made a profit of about $ 192 billion from the iPhone sale. Due to covid 19, we've seen a lot of reduction in the profit of the businesses during lockdown several big chip developing companies had to stop their production and which impacted the world's largest iPhone brand Apple. Due to the shortage of chips, Apple won't be able to feed enough chips into their devices. That's why the company is currently focusing on feeding chips to the iPhones which are in high demand right now.
However, the demand for iPads for learning purposes has also seen a huge jump due to the pandemic. According to IDC data, the company made a profit of about $ 32 billion last year due to the iPad. Apart from Apple, the Global auto industry is also facing a shortage of semiconductor chips which impact the production of vehicles worldwide.