Summary: Apple has reportedly promoted the production of iPhones and iPads in the second quarter of this year. It is increasing the output of iPhones by four million and iPads by 1.5 million. This is the company's response to the trade tension between China and the US and a change in tariff policy by the Trump administration. Apple is making its list ahead of any sudden tariff hike.
China and America are currently in a serious trade deadlock. In addition, the upcoming changes in tariff policies by the Trump administration have only intensified tension among technical companies. To compete with the upcoming increased tariff fee, Apple is going to promote the production of iPhones. In addition, cupertino tech giants are also increasing the construction of iPads.
Apple has modified its Q2 manufacturing forecast for iPhones and iPads
According to a report from Morgan StanleyApple has increased the Q2 production of iPhones from 41 million to 45 million units. For iPads, the company has competed from 11.5 million to 13 million units to manufacturing. This is an increase of 15% and 24% year-by-year respectively.
The report states that Apple's new manufacturing strategy for Q2 reacts to customers' demand for increased inventory amidst uncertain tariff policies. In addition, the US government's tariff policies have intensified uncertainty by changing overnight.
It is worth noting that President Trump proposed “Flexible tariff” On mobile and semiconductor goods. Earlier this month, the US government announced that it would exclude “Smartphones, semiconductors (including SSD and equipment), and more” This was deployed with mutual tariffs. However, Trump has not yet extended accurately “Flexible tariff” On these products, this is why companies like Apple are taking precautionary measures.
Apple suppliers are going to get the benefits of increased production
Apple's decision to promote the production of iPhones and iPads will be important implications for the company's supply chain. South Korean suppliers including Samsung display, LG display and LG Inotech are going to be the biggest beneficiaries. These companies provide a lot of components for iPhones and iPads.
Some of the largest components include screen and camera modules. The above companies will see an increase in revenue in Q2 this year, thanks for the increased production.
He said, Apple is also bringing diversity to its construction to reduce the risk from potential tariff hike. According to Nikkei Asia, Apple has asked major suppliers to expand the iPhone construction in India. In addition, it has tasked suppliers to transfer the construction of MacBook and iPad from the US market to Vietnam.
In particular, the company is already collecting the iPhone 16E in Brazil, just outside the gate. This has marked a change in Apple's long -term manufacturing plans. Overall, the brand plans to reduce its dependence on manufacturing in Chinese features.