In a strategic move to counter new trade tensions, tech titan Apple expedited iPhone and other device shipments from India and China to the United States. According to reports, the company shipped five planeloads of devices from India to the US within just three days during the third week of March. This urgent shipment was aimed at avoiding a 10 percent retaliatory tariff imposed by President Donald Trump during the previous week.
Despite these tariff challenges, Apple has confirmed that it does not plan to increase retail prices in India or other global markets. To cushion the impact of the new tariff, Apple swiftly transported inventory from its manufacturing hubs in India and China to the US, an unusual move during what is typically a slower shipment season.
Apple Stockpiles Devices to Delay Global Price Hike
To maintain current price levels, Apple has reportedly stockpiled enough inventory in its US warehouses to last a few months. This buffer enables the company to temporarily hold prices steady, safeguarding both consumer demand and profit margins in one of its most critical markets.
Apple is currently assessing the effects of differential tariff regimes across its manufacturing centers and making strategic decisions to minimize disruptions. The US remains a key market for Apple, and shielding American consumers from price increases is seen as vital to maintaining sales momentum.
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India Emerges as a Key Player in Apple’s Supply Chain Strategy
Apple has been ramping up iPhone and AirPods production in India, and this strategy is now paying off. Indian exports to the US face a 26 percent tariff significantly lower than the 54 percent tariff applied to Chinese imports. This 28-percentage-point differential gives Apple strong economic incentives to accelerate its production shift to India.
On Monday, President Trump issued another warning of additional tariffs on China unless the country lifts the retaliatory duties it announced after the US imposed its own tariffs on April 3 . As a response, Apple is expected to increase iPhone shipments from India to the US to offset the higher costs associated with Chinese production.
Meanwhile, reports suggest that Apple is actively seeking a tariff exemption from President Trump. CEO Tim Cook previously secured a similar exemption during Trump’s first administration, and the company is hopeful for a favorable outcome again.
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