Apple is reportedly taking special measures into its hands by sourcing iPad parts and using them in its latest iPhone 13 family in order to combat supply issues. During the technology giant’s latest earnings call, CEO Tim Cook stated that the company is doing everything it can to meet demand, and according to a new report, this is one way to deal with a problem.
iPad Production Is Down 50 Percent Compared to Apple’s Original Plan for the Past Two Months
Since Apple’s iPad and iPhone use similar chips to an extent, it is easier for the company to shift supplies between the two product families depending on the demand. Historically, the company’s iPhone range has always sold more units than the iPad and hence, generated more revenue, so it would make a ton of sense for Apple to ramp up iPad parts and incorporate those in the iPhone 13.
According to a report from Nikkei Asia, production of the iPad series was down 50 percent for the past two months, with sources close to the matter saying that parts for older iPhones were now being shifted for use in the iPhone 13. The ongoing supply issues have also struck Apple financially, as, during its earnings call, Tim Cook said that this setback cost the company $6 billion in revenue. The situation might get worse before it improves, but Apple would be working round the clock with its supply chain to make sure it can churn out as many shipments as possible.
If you did not notice, in an iPhone 13 Pro teardown, we noticed that Apple was using LPDDR4X RAM instead of the LPDDR5 standard used in competing Android flagships. Again, the choice to use slower and less power-efficient memory might be connected with the ongoing chip shortage, so Apple had little command here. Also, TSMC, Apple’s only silicon manufacturing partner, is now prioritizing those clients who are not stockpiling chips, but it does not look like this move will hurt its relationship with Apple in any way.
The Taiwanese chip giant also reportedly increased 5nm chip prices for Apple as it aims to invest around $100 billion to increase production. Overall, even the biggest firms have not been able to deal with this situation, and in the coming months, we will see how well they have fared.
Image Credits - iFixit
News Source: Nikkei