Summary: Apple has reportedly boosted the production of iPhones and iPads in the second quarter of this year. It is raising the output of iPhones by four million and iPads by 1.5 million. This is the company’s response to the trade tensions between China and the US, and the tariff policy changes by the Trump administration. Apple is building its inventory ahead of any sudden tariff hikes.
China and the US are currently in a serious trade standoff. Also, the upcoming changes to the tariff policies by the Trump administration have only intensified tensions among tech companies. To combat the upcoming increased tariff charges, Apple is going to boost the production of iPhones. Furthermore, the Cupertino tech giant is also increasing the manufacturing of iPads.
Apple has revised its Q2 manufacturing forecast for iPhones and iPads
According to a report from Morgan Stanley, Apple has boosted the Q2 production of iPhones from 41 million to 45 million units. As for the iPads, the company has bumped the manufacturing from 11.5 million to 13 million units. That’s a hike of 15% and 24% year-on-year, respectively.
The report suggests that Apple’s new manufacturing strategy for Q2 responds to customer demand for increased inventory amid uncertain tariff policies. Furthermore, the US government’s tariff policies changing overnight has intensified the uncertainty.
It’s worth mentioning that President Trump proposed a “flexible tariff” on mobile and semiconductor goods. Earlier this month, the U.S. government announced that it would exclude “smartphones, semiconductors (including SSDs and equipment), and more” from the reciprocal tariffs it imposed. However, Trump hasn’t yet detailed the exact “flexible tariffs” on these products, which is why companies like Apple seem to be taking precautionary measures.
Apple suppliers are going to get the benefits of increased production
Apple’s decision to boost production of iPhones and iPads will have significant implications for the company’s supply chain. South Korean suppliers, including Samsung Display, LG Display, and LG Innotek, are going to be the biggest beneficiaries. These companies provide a lot of components for iPhones and iPads.
Some of the biggest components include the screens and camera modules. The aforementioned companies will see revenue increases in Q2 this year, thanks to the increased production.
That said, Apple is also diversifying its manufacturing to reduce risks from the potential tariff hikes. According to Nikkei Asia, Apple has asked key suppliers to expand iPhone manufacturing in India. Furthermore, it has tasked suppliers to shift the manufacturing of MacBook and iPad from the US market to Vietnam.
Notably, the company is already assembling the iPhone 16e in Brazil right out of the gate. This has marked a shift in Apple’s long-term manufacturing plans. Overall, the brand plans to decrease its dependency on manufacturing in Chinese facilities.
The post Apple boosts production of iPhones and iPads amid trade tensions appeared first on Android Headlines.

Source: ndroidheadlines.com