Apple’s iPad is out of stock

2022-05-13 0 By

At a time when accessories such as headphones are seriously out of stock, Apple’s iPad is also out of stock.Supply chain sources say Apple has now adjusted its strategy to cut iPad production capacity by more than 50% in order to maintain supply of iphones, which means iPad shortages will get even worse.The securities Daily reporter noted that currently in jingdong, Taobao and other official flagship stores of Apple, the waiting period for ordering mainstream iPad products is 43 days, and there are often out of stock.Some consumers said they were delayed 55 days to get the goods.It is understood that at present, Apple has only guaranteed the supply of high-end iPad for more than 6,000 to 7,000 yuan, but the delivery period is also in 8 to 22 days.For iPad out of stock phenomenon, Apple China related person in charge of communication with reporters, did not directly respond, only said that this is “headquarters unified strategic adjustment”.In the context of global core shortage, Apple with a strong supply chain system is also difficult to stay immune.Lin Zhi, chief analyst at WitDisplay, sees apple’s emergency redeployment strategy as more of a desperate move.”Apple is supposed to be the least affected company by the shortage of chips, as foundries tend to supply them first, but Apple doesn’t have enough control over some of the lower-process chip vendors, making it vulnerable.This has also become an important factor restricting Apple’s iPhone production. Meanwhile, the volatility of the epidemic has also affected the production and supply of enterprises in Apple’s supply chain. Apple had to temporarily sacrifice the capacity of iPad to ensure the production of iPhone.”It’s not hard to understand apple’s behavior.Apple sold 57.8 million ipads in 2021, according to IDC, and the industry expects sales of the iPhone13 to top 300 million units this year.The difference is huge.Apple, which has briefed component makers on its supply and demand plans, has set a target of shipping 170 million iphones in the first half of this year, increasing production by 30% despite a chip shortage.”Tablets are slow to update, and the iPad shipped on a much smaller scale than the iphone13.At the same time, the price of the iphone13 is much higher than that of the iPad, and the product has higher added value. Therefore, when the chip is still scarce, apple moves the chip to the phone with higher added value in order to achieve business growth and high profits.”Yi Xianjing, deputy general manager of Di Xian Information, said in an interview with securities Daily.In recent years, Apple has had a rocky ride and needs a steady stream of profits to sustain its growth.The iPhone has long been apple’s flagship product and the source of its core profits, but its sales in The Chinese market declined for several years due to lack of innovation. The launch of the new iPhone13 and the loss of market share by high-end handset makers with limited 5G capabilities have made its sales boom again.Indeed, iPhone sales are up, while iPad sales are down.Apple had 34.2 percent of the iPad market last year, but that share peaked at 50 percent in 2013, with overall tablet shipments falling worldwide.The iPhone is driving apple’s overall performance, with its highest revenue ever recorded in the first quarter of fiscal 2022.Apple reported $7.25 billion in iPad revenue in the first quarter, down 14% from a year earlier. Analysts expected $8.11 billion.IPhone revenue in Q1 was $71.63 billion, versus $67.74 billion expected, up 9.2% from a year earlier.”It is customary for large factories to make temporary adjustments in their product lines and give priority to high-margin products.But Apple also faces challenges as it faces such a long and massive supply chain shortage, a first for many electronics giants.Most of the capacity adjustment is short-term behavior, such as excessive dependence, poor coordination of manufacturers, inaccurate judgment of the market, but also easy to leave a supply imbalance, loss of market and other sequela.”For global electronics manufacturers, it is important to plan ahead for supply chain contingencies and build strong resilience.””Said Bai Wenxi, IPG’s chief economist in China.