Apple increases iPhone and iPad production due to Trump's new tariffs
Apple has decided to increase production of iPhones and iPads in the second quarter of 2025. According to reports, the company will increase iPhone production by four million units and iPad production by 1.5 million.
Here's What We Know
This is a response to trade tensions between China and the US, as well as changes in the Trump administration's tariff policy. Apple is actively building up its inventory to be ready for possible sharp tariff increases.
The trade confrontation between the US and China is gaining momentum, and changes in US tariff policy have further increased uncertainty among tech companies. To mitigate the impact of higher customs duties, Apple is increasing iPhone production. In addition, the company is expanding iPad production.
According to Morgan Stanley's forecasts, Apple has raised its iPhone production target for the second quarter from 41 million to 45 million units. The iPad production increased from 11.5 million to 13 million units, which is 15% and 24% growth respectively compared to the previous year.
In addition, the Trump administration has proposed the introduction of "flexible tariffs" on mobile devices and semiconductor products. Although details of these changes have not yet been provided, companies, including Apple, are trying to prepare for possible tariff increases.
Apple's decision to increase production will have a significant impact on its suppliers. South Korean companies such as Samsung Display, LG Display and LG Innotek, which supply components for the iPhone and iPad, including screens and camera modules, will benefit the most.
Apple plans to increase iPhone production in India and move MacBook and iPad production from the US to Vietnam. Importantly, the company is already assembling the iPhone 16e in Brazil.
Source: Android Headlines
