Apple Increases iPhone Production by 4 Million Units, Samsung Reaps Rewards
With Apple significantly boosting its iPhone and iPad production for the second quarter of 2025, the tech giant is not only preparing for increased demand but also making strategic business moves in light of tariff challenges. This increase in output is projected to benefit Samsung and other South Korean suppliers, further solidifying their roles in Apple's supply chain.
According to a recent report from Morgan Stanley, Apple has adjusted its manufacturing forecasts to raise iPhone production from 41 million to 45 million units. Additionally, iPad production is set to increase from 11.5 million to 13 million units. This represents a year-over-year growth of 15 percent and 24 percent, respectively.
Apple is diversifying its manufacturing locations to mitigate potential future disruptions, with plans for production in Brazil for models like the iPhone 16e. This strategic shift aims to ensure stability and adaptability in an evolving market.
Samsung and Other South Korean Suppliers Stand to Benefit
The upcoming release of the iPhone 17 later this year positions Apple for a strong fall season, especially if tariff pressures begin to ease. This proactive increase in production is expected to facilitate a smoother transition and better support for their existing devices.
