Giant technology company manufacturing consumer electronics Apple Inc. (AAPL) has suspended production of iPad tablets so as to direct more components to production of lately released IPhone 13.
The IPhone manufacturer resulted to this move as the global shortage of chips continue to bite deeper causing major disruptions in production activities in many companies. The company says it has been affected by the chip shortage more than it had anticipated.
According to a post on Nikkei, for the past two months, the company has decreased production of iPad tablets by 50% further adding that Apple has been directing components meant for older IPhone models to IPhone 13.
The report suggests that Apple is giving more priority to production of IPhone 13 because it expects that it will have a stronger demand compared to the iPad especially this time when the world is begging to recover from the pandemic.
The chip shortage has also significantly affected the automotive industry. Notable car manufacturers have also been forced to suspend production activities in their factories due to the shortage.