The company stated that it will be able to increase its production efficiency especially for the iPad in the second half of the year, which, we assume, will result in more iPads being produced.
Foxconn also believes that these investments will make the company much more profitable again. The contract manufacturer recently cut its sales growth forecast, but remains very profitable: The company posted a net profit of more than $2.7 billion for its most recent fiscal year.
Apple's business problems currently are pretty much limited to the fact that it cannot make enough products and that it could sell more iPads and iPhones than companies such as Foxconn can assemble. Apple sold more than 7.3 million iPads in the Christmas quarter and about 4.7 million in the first quarter of this year. The company also sold 16.3 million iPhones in the fourth quarter of last year and 18.7 million in the first quarter of this year. Analysts from IDC believe that Apple will be able to sell about 166 million iPhones in 2015 - if its contract manufacturers find ways to produce them.