Sources: Apple has cut back on iPad production to allocate more chips to the iPhone 13; iPad production was down 50% from original plans for the past two months

U.S. tech giant produces 50% fewer tablets than planned in September-October — TAIPEI — Apple has cut back sharply …

Nikkei Asia 2021-11-02

Context & Ripple Effects

Apple had already been reshaping device plans earlier in 2021, including rescheduling new MacBook production to the second half while reducing iPhone 12 mini orders. The current allocation decision makes the constraint explicit: chips are being steered among Apple product lines rather than simply trimming a single weak-selling model.

The later report that Apple reduced its 2021 iPhone 13 target by up to 10 million units indicates that prioritizing iPhone 13 did not fully close its supply gap. That makes the iPad reduction a portfolio-level response to limited component availability, not a resolution of it.

First-order effects

Apple's iPad supply falls materially below plan for September and October, while iPhone 13 receives the chips released from tablet production.
Apple's operations team must prioritize iPhone 13 output over iPad volume during the affected production window.

Second-order effects

Suppliers serving both product lines must follow Apple's revised component allocation, making iPad-related production schedules less predictable.
The subsequent iPhone 13 target cut shows that Apple still faced constrained handset output even after shifting chips away from iPad, limiting the relief available from internal reallocation.

Third-order effects

If such trade-offs persist, Apple’s product planning becomes more dependent on allocating scarce semiconductor capacity across its own lineup than on independently matching planned demand for each device.
The episode fits a broader semiconductor-capacity-lag dynamic in which large device makers use portfolio prioritization to protect their highest-priority launches.

The trend: Semiconductor shortages are turning multi-device hardware planning into an internal competition for constrained component supply.

Discussion

@sino_market CN Wire on x
Apple has cut back sharply on iPad production to allocate more components to the iPhone 13.-Nikkei cites sources. Production of the iPad was down 50% from Apple's original plans for the past two months. #Apple $AAPL https://asia.nikkei.com/...
@imaruritokyo Rurika Imahashi on x
#Apple has cut back sharply on #iPad production to allocate more components to the iPhone 13, multiple sources told Nikkei Asia, a sign the global chip supply crunch is hitting the company even harder than it previously indicated. https://asia.nikkei.com/...
@natisho Nati Shochat on x
“This is not the first time Apple has prioritized iPhones over iPads.” It makes sense to prioritize the device that makes ~50% of revenue over the one that makes ~10%. https://asia.nikkei.com/...
@oscarfalmer Oscar Falmer on x
I find these rumors quite funny because in 2018, rumors were saying 2019, then over the years 2020, 2021, 2022... I mean there is no point sharing rumors about a unknown release date, this just creates unnecessary frustration in the AR community https://www.macrumors.com/...
@dilmerv Dilmer Valecillos on x
We all know #Apple by now and they don't release when there is a hype, they release after everyone else has done it and they do it just better. 📌 AR Glasses or better said “Mixed Reality” glasses will come soon and when they do that's when we will see major adoption. https://twit…

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