Apple is exerting pressure on its suppliers, Samsung and LG, to help mitigate the impact of U.S. tariffs. Samsung Display is currently in negotiations with Apple regarding these demands, while LG Display has already agreed to the new terms due to its heavy reliance on this year’s orders for the iPhone 17.
Adding to the complexity, Apple has had to exclude Chinese display manufacturer BOE from its supply chain for the current year. The upcoming iPhone 17 series is set to receive significant enhancements, including the introduction of a 120 Hz LTPO display—referred to by Apple as a “ProMotion” display.
However, BOE failed to meet Apple’s quality standards, although it has recently secured some orders for the Chinese market. In response to these challenges, President Trump has specifically targeted the iPhone with tariffs if Apple continues to manufacture its devices overseas.
The tariff policies affect a wide range of products, but the President’s statements have focused particularly on the iPhone, emphasizing the need for production to shift back to the United States. This situation creates additional pressure for Apple’s CEO, Tim Cook.
While Apple has found the tariffs manageable compared to relocating production, the company remains committed to minimizing manufacturing costs wherever possible. The iPhone 17 series, equipped with upgraded specifications like 12 GB of RAM, is likely to see a price increase.
As Apple plans to transition to 2 nm chipsets with the upcoming A20 processors next year, the costs are anticipated to rise even further. Unlike Apple, Samsung has found itself somewhat insulated from the direct repercussions of tariff pressures, as it operates outside of the targeted smartphone category.
Consequently, Samsung continues to navigate these challenges more smoothly than Apple.