Apple cuts iPad output to save chips: Nikkei

The global chip shortage may be biting Apple harder than expected.

Japan's Nikkei newspaper says the tech giant has had to cut output of iPads.

That's in order to save the available chips for its smartphones.

The Nikkei says iPad production was down by a half over the past two months.

Parts meant for older models of iPhone are also reportedly being reallocated to the newest versions.

The Nikkei cited multiple sources.

Apple was generally thought to have weathered the global supply crunch better than many rivals.

That's due to its massive purchasing power, and long-term agreements with chip suppliers.

Those factors helped it to win extra market share over the third quarter.

Now the Nikkei says it's prioritising phones as it expects demand for them to grow more strongly than for other gadgets.

There was no immediate comment from Apple.

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