Apple has cut down the production of its flagship iPad by 50% to shuttle all resources towards the iPhone 13 production. This indicates that the global chip-supply crunch has hit the tech giant hard and Covid 19 disruptions can now cause significant delays in iPad deliveries.

The iPad and iPhone 13 share multiple components such as the core and peripheral chips. According to the website Nikkei Asia Apple has predicted greater demand for the iPhone 13 in comparison to the iPad. iPhones are Apple’s iconic product and have high seasonal sales when launched in autumn. 

Apple CFO Luca Maestri has said that of all the Apple products, iPad revenue for the last quarter of 2021 is set to drop due to component shortages. CEO Tim Cook has been quoted as saying that the company revenue for the 3rd quarter of 2021 was 6 billion USD lower than expected due to silicon shortages in the technology manufacturing industry and COVID-19 related process disruptions. According to Cook an even greater impact is expected to be felt in the last quarter of the year.

Another potential reason for marshaling available components to iPhone13 production is the less competition Apple faces in the tablet market as opposed to the smartphone market.