Profit first, Apple still sacrifices iPad to meet iPhone production capacity
Under the impact of the chip shortage, apple has also had to adjust its production capacity, sacrificing the delivery cycle of the iPad to supplement the shipment of the iPhone13 series to meet demand.The rationale is that the iPhone 13 series is more profitable, in demand and in sales.It makes sense for Apple to sacrifice iPad shipping cycles in its quest to maximize profits.Because some of the common chips can be shared, squeezing the supply of ipads and giving the iPhone 13 more capacity is in line with Apple’s profit-seeking goals.So far, Apple’s chip tension has improved, but it is also focused on the iPhone 13 series. Apple Watch has also improved, but for the iPad, the shipping cycle is still very long, customers have to wait nearly two months.This is also the underlying effect of iPad sales not growing.At Apple’s latest quarterly presentation, Cook said the iPad was the only item in all of Apple’s product lines that didn’t grow last quarter amid a shortage of mature process chips, with revenue falling 14.1 percent to $7.3 billion.According to Nikkei, the average delivery time for ipads is up to nine weeks.Nikkei has tracked the average of the delays since November in 25 of Apple’s major markets, including the U.S. and China.Behind the iPad delay is a sharp improvement in delivery times for the iPhone 13 series, which have fallen to about 10 days for some models from more than a month late last year.”As the iPad panel is larger than 8 inches, a large number of display driver ics are required, and such driver ics belong to the mature process category, which is also the hardest hit area of chip supply shortage,” said a research institute.That’s why Apple is freeing up capacity for the iPhone 13 series.Entering 2022, Apple’s industrial chain has improved. Apple has informed iPhone assembly plants to speed up production during the Lunar New Year to meet various holiday consumer needs around the world.On the second day of the New Year, Foxconn Zhengzhou Science and Technology Park wechat public account released the news that affected by the epidemic, this Spring Festival, Zhengzhou Foxconn has nearly 100,000 people left behind, employees cooperate with attendance, in addition to wages, overtime pay, the highest can also get 3,000 yuan reward.Another reason for the delay is the iPad’s dominant LCD panel, which requires a more sophisticated manufacturing supply chain, compared with OLED for the iPhone and Apple Watch.The panel type difference is one of the reasons for the inconsistent delivery of each product line. Compared with the mature process, the advanced process has fewer supply constraints, and chip manufacturers have relatively small demands.The ripening process is more complicated.Of course, the most important thing is that Apple chose to avoid the strategy of protecting the leader, to meet the more profitable iPhone 13 series shipments, as much as possible in the peak sales season, to meet user demand, which is the fundamental reason.According to Canalys’ report on global smartphone shipments in the fourth quarter of 2021, Apple took the top spot with 22% of the global market share.Second is Samsung.Apple took the top spot thanks to the launch and rapid market entry of the iPhone 13 series, which has topped the Chinese market for six consecutive weeks, according to Counterpoint Research.Among them, iPhone 13 accounted for 51% of the sales of the series, iPhone 13 Pro Max accounted for 23%, iPhone 13 Pro and iPhone 13 Mini accounted for 21% and 5%, respectively.Securities analysts say demand for the iPhone 13 series is strong.Industry chain revenue grew strongly quarter-on-quarter, with Hon Hai, TSMC and Zhending all recording their highest monthly revenue in December 2021 last year, reflecting the strong pickup momentum of Apple’s new iphones.Apple is also expected to introduce a new, cheaper iPhone SE in the first quarter of this year, which could boost shipments somewhat.For domestic mobile phone manufacturers, how to pull in the gap with Apple, especially in the domestic market, to regain the main position of market share needs domestic mobile phone manufacturers to make joint efforts.