Apple boosts Q2 iPhone shipments amid US China trade tensions
Apple has reportedly increased production of iPhones and iPads in the second quarter of this year as a precautionary move amid rising trade tensions between the US and China. According to a report by Morgan Stanley, the company has raised its iPhone output from 41 million to 45 million units and iPad production from 11.5 million to 13 million units. This increase comes in response to uncertainty over changing US tariff policies, as the Trump administration considers new duties on Chinese goods. Apple is believed to be stocking up inventory to avoid sudden cost hikes and meet anticipated demand.advertisementThe ongoing trade dispute between the US and China has placed tech companies in a difficult position. Apple's decision to boost production is being viewed as a proactive step to shield itself from potential disruptions caused by sudden policy changes. With the Trump administration proposing a 'flexible tariff' on mobile devices and semiconductors, many companies are unsure how the final rules will play out. Although the US recently announced that smartphones and semiconductors would be excluded from some reciprocal tariffs, the details around flexible tariffs remain unclear.Apple's increased manufacturing is not just about preparing for tariffs — it's also a strategic move to strengthen its global inventory. According to Morgan Stanley, this change in production is to maintain the inventory levels of Apple-related models, especially in markets that may be affected by price or supply chain issues. Based on the report, Apple's iPhone production is set to rise by 15 per cent year-on-year, while iPad output will go up by 24 per cent.advertisement
The production hike is expected to benefit several of Apple's key suppliers. South Korean firms like Samsung Display, LG Display, and LG Innotek are among those set to gain. These companies provide crucial components like OLED panels and camera modules for Apple's devices. In fact, over 40 per cent of Samsung Display's revenue reportedly comes from Apple, while LG Innotek and LG Display have 81 per cent and 54 per cent exposure to Apple-related business, respectively.To further reduce its dependency on Chinese manufacturing and avoid future tariff shocks, Apple is continuing to diversify its production locations. As per reports, the company has asked its suppliers to expand iPhone manufacturing in India. It has also started shifting MacBook and iPad production to Vietnam. Additionally, Apple has begun assembling the iPhone 16e in Brazil — a move that highlights its long-term plan to lower reliance on China.An industry insider noted that the current production ramp-up is focused on existing models from last year, but with the iPhone 17 expected later in 2025, further increases in output could be seen. 'If we can also break free from tariff pressures, it could act as a boon,' the source added.
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an hour ago
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Most expensive iPhone is made for just Rs 42000 but Apple sells it for Rs 1.32 lakh due to...
iPhone price in India New Delhi: American tech giant Apple sells its iPhones in various models at premium prices, but did you know that the actual manufacturing cost of these devices is significantly lower? Last year, the most expensive models were iPhone 16 series and iPhone 16 Pro Max. But have you ever wondered how much it actually costs to make this phone that sells for lakhs? In this article, we will tell you the cost of making these handsets. When the actual cost is so low, you might wonder why Apple charges more than double the price from customers. Today, we're going to tell you about the manufacturing cost of the iPhone 16 Pro Max. In fact, shortly after this phone was launched last year, a report was released revealing details about its manufacturing cost. Manufacturing Cost of iPhone 16 Pro Max The Bill of Materials (BOM) cost of the iPhone 16 Pro Max is USD 485 (approximately Rs 41,992 or Rs 42,000), according to market research firm TD Cowen. The report also stated that this is slightly higher than the cost of the iPhone 15 Pro Max, which was USD 453 (around ₹39,222). Why does a phone made for Rs 41,000 sell for over a lakh? It's important to note that the BOM only includes the cost of raw materials and assembly. The final retail price also factors in expenses like software development, marketing, and logistics, which significantly increase the overall cost. Currently, the 256GB variant of the iPhone 16 Pro Max is being sold on Flipkart for Rs 1,32,900. Check Key Details Here: The higher cost of the iPhone 16 Pro Max compared to the iPhone 15 Pro Max is due to the upgraded hardware components used in the handset. The display and rear camera system of the iPhone 16 Pro Max are the two most expensive parts, costing around ₹6,700. In comparison, these parts in the iPhone 15 Pro Max cost Rs 6,300 and Rs 5,900 respectively. The introduction of new LPDDR5X RAM technology has also added to the total cost With the RAM in the iPhone 16 Pro Max priced at Rs 1,400, whereas the older LPDDR5 RAM in the iPhone 15 Pro Max cost only Rs 1,000. The A18 Pro chipset and storage in the iPhone 16 Pro Max cost Rs 3,400 and Rs 1,900 respectively. Even after accounting for logistics and software development, Apple maintains a healthy gross margin and earns a significant profit on each model of the iPhone 16 Pro Max.
