Apple has decided to limit the production of iPads due to the lack of components. Their stocks were directed to the production of the latest model of iPhones 13. The Reuters agency notes that the decision shows that the crisis on the chip market hit the American company harder than previously thought.
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The information was first published by the Nikkei daily, citing its own sources related to the case.
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The chip shortage is hitting Apple
“Apple handled the supply chain crisis better than many other companies thanks to its market position and long-term supply contracts with chip makers. This meant that the company took over a significant market share of smartphones and tablets from its rivals in the third quarter,” notes Reuters. .
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Recently, however, Apple CEO Tim Cook emphasized that the supply disruptions will affect the company’s sales results in the crucial holiday quarter. “The chip shortage affects most of the company’s products,” he said.
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Apple cuts production
The chips are to be used in the first place for the production of the flagship smartphone – the iPhone 13. The company predicts that the demand for the phone will be higher than for the latest model of the iPad, the production of which, according to press reports, has been limited.
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Nikkei writes that it has dropped by half compared to Apple’s original plans for the last two months. The production of older iPhone models has also been limited.
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Sales of the iPhone, which accounts for most of Apple’s business, reached $ 192 billion last year. IPad sales are almost $ 32 billion.
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Smartphone market
According to IDC data, in the second quarter of 2021, the smartphone market grew by 13.2 percent. Deliveries reached the level of 313.2 million units. The market leader was Samsung (59 million units and 18.8% market share), followed by Xiaomi (53 million units and 16.9% share) and Apple (44.2 million units and a share of 14.1%). .).
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photo-source">Main photo source: Shutterstock
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