Apple has announced an increase in the production of iPhones and iPads for the second quarter of this year. The company plans to ramp up iPhone output by four million units and iPad production by 1.5 million units. This decision reflects Apple’s strategy to prepare for potential changes in tariff policies amid ongoing trade tensions between China and the United States, particularly under the Trump administration.

The trade standoff between the two nations has created uncertainty in the tech industry, prompting Apple to bolster its manufacturing levels. According to a report from Morgan Stanley, Apple has revised its Q2 forecast, increasing iPhone production from 41 million to 45 million units and iPad production from 11.5 million to 13 million units. These changes represent year-on-year increases of 15% for iPhones and 24% for iPads.

This shift in manufacturing underscores Apple’s response to rising customer demand for greater inventory amid uncertain tariff landscapes. Recent announcements from the U.S. government, including the proposal of a flexible tariff on mobile and semiconductor goods, have further complicated the situation. While certain products were excluded from recent reciprocal tariffs, the lack of specific details has urged Apple to take proactive steps in its production strategy.

The increase in production will benefit various suppliers, particularly South Korean companies such as Samsung Display and LG Display. These firms, which provide essential components like screens and camera modules, are poised for revenue boosts in Q2 due to the higher production levels. Additionally, Apple is diversifying its manufacturing locations to mitigate risks linked to potential tariff increases.

Reports indicate that Apple is expanding iPhone manufacturing in India and has begun shifting MacBook and iPad production to Vietnam. The company is also assembling the iPhone 16e in Brazil, marking a strategic move to reduce reliance on Chinese facilities for its manufacturing needs.