Tuesday, 02 January 2024 12:17 GMT

Media reports Apple staging emergency iPhone airlift from India


(MENAFN) Apple expedited shipments of iPhones and other devices from India to the US in late March, sending five planeloads of products within just three days, according to a report from the Times of India, citing unnamed senior sources.

This move was reportedly made to circumvent a new 10% reciprocal tariff imposed by US President Donald Trump, which took effect on April 5. Apple’s factories in India, China, and other major manufacturing hubs had been preparing for the tariff hike by shipping products to the US ahead of time. The existing stock, which had been imported at lower rates, would help Apple avoid higher costs for some time, a source explained.

Despite shifting some production to countries like Vietnam and India, the majority of iPhones are still made in China. However, with the new tariffs affecting Vietnam and India as well—at rates of 46% and 26%, respectively—Apple faces higher costs across its supply chain. Meanwhile, Chinese-made products are now subject to a 34% import tax in the US.

Apple, which sells over 220 million iPhones annually, is assessing how varying tariff structures from different manufacturing regions will impact its business. The company’s biggest markets remain the US, China, and Europe. A report by Reuters highlighted that the new tariffs could increase the price of the cheapest iPhone 16 model in the US from $799 to $1,142, a 43% jump, if Apple decides to pass on the costs to consumers.

Despite these challenges, Apple has indicated that it does not plan to raise retail prices globally. Additionally, a Wall Street Journal report revealed that Apple is intensifying its efforts to export more iPhones from India to the US in order to minimize the impact of tariffs on its Chinese products.

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