iPhone production just went up by 4 million units, and Samsung is the biggest beneficiary
iPhone production just went up by 4 million units, and Samsung is the biggest beneficiary
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Apple intensifies the production of iPhone and iPad for the second quarter of 2025, and it appears to be the definitions in the center of this decision. according to Apple, a new report from Morgan Stanley, reviewed its manufacturing expectations in the second quarter, which raised the production of iPhone from 41 million to 45 million units. IPad production also gets a bump, moving from 11.5 million to 13 million. This is 15 percent and 24 percent on an annual basis, respectively. The timing of this height is closely related to the constant induction of urbanization. With the imprisonment of the United States and China in a tense commercial confrontation, the Trump administration indicates changes in customs tariff policies, Apple appears to have turned their stakes by building inventory before any sudden cost mutations. While mobile phones and some technical components were temporarily excluded from the American definitions, policy changes were not consistent, prompting Apple to take precautionary steps now instead of waiting. The Apple production strategy also highlights its efforts to diversify its manufacturing base. While China and Vietnam remain major centers, both countries face a potential increase of 145 and 46 percent, respectively. This is a great danger to Apple, which is why we also see a larger boost towards production in India, and Brazil for the iPhone 16E. By spreading where its devices are made, Apple tries to protect itself from future disorders.
Samsung show worker in South Korea. | Photo credit - Samsung offer
Samsung and other South Korean suppliers benefit
This increase in production already proves to be useful for Apple components suppliers in South Korea. Companies such as Samsung Display, LG Display and LG Innotek are the main players in the Apple supply chain, where screens and camera units are available. Last year, more than 80 percent of the Apple's LG Innotec's revenues came from Apple. The Samsung screen also depends on Apple, with more than 40 percent of its income.
It should be noted that the devices that are produced now are not new models. These are the iPhone and iPad devices that have already been launched, which means that Apple is simply stored before release iPhone 17 later this year. If the customs tariff pressure is reduced by that time, the company may give more flexibility in the crowded autumn season.
Apple's proactive approach. It explains that the company is not waiting for it to see how commercial policy appears. Instead, it takes steps to maintain the flow of products and avoid the chain of supply chain. with iPhone 17 Boot or lower, this early step can give Apple a smooth path forward, at least when it comes to its current devices.
Apple intensifies the production of iPhone and iPad for the second quarter of 2025, and it appears to be the definitions in the center of this decision. according to Apple, a new report from Morgan Stanley, reviewed its manufacturing expectations in the second quarter, which raised the production of iPhone from 41 million to 45 million units. IPad production also gets a bump, moving from 11.5 million to 13 million. This is 15 percent and 24 percent on an annual basis, respectively. The timing of this height is closely related to the constant induction of urbanization. With the imprisonment of the United States and China in a tense commercial confrontation, the Trump administration indicates changes in customs tariff policies, Apple appears to have turned their stakes by building inventory before any sudden cost mutations. While mobile phones and some technical components were temporarily excluded from the American definitions, policy changes were not consistent, prompting Apple to take precautionary steps now instead of waiting. The Apple production strategy also highlights its efforts to diversify its manufacturing base. While China and Vietnam remain major centers, both countries face a potential increase of 145 and 46 percent, respectively. This is a great danger to Apple, which is why we also see a larger boost towards production in India, and Brazil for the iPhone 16E. By spreading where its devices are made, Apple tries to protect itself from future disorders.
Samsung show worker in South Korea. | Photo credit – Samsung offer
Samsung and other South Korean suppliers benefit
This increase in production already proves to be useful for Apple components suppliers in South Korea. Companies such as Samsung Display, LG Display and LG Innotek are the main players in the Apple supply chain, where screens and camera units are available. Last year, more than 80 percent of the Apple’s LG Innotec’s revenues came from Apple. The Samsung screen also depends on Apple, with more than 40 percent of its income.
It should be noted that the devices that are produced now are not new models. These are the iPhone and iPad devices that have already been launched, which means that Apple is simply stored before release iPhone 17 later this year. If the customs tariff pressure is reduced by that time, the company may give more flexibility in the crowded autumn season.
Apple’s proactive approach. It explains that the company is not waiting for it to see how commercial policy appears. Instead, it takes steps to maintain the flow of products and avoid the chain of supply chain. with iPhone 17 Boot or lower, this early step can give Apple a smooth path forward, at least when it comes to its current devices.
