According to reports, Apple used five planes to expedite iPhone shipments from India (and other markets) to the US in late March in order to avoid new US tariffs. According to a story by The Times of India, the operation, which lasted only three days, was conducted to evade a 10% reciprocal levy imposed by the Trump administration that went into force on April 5.
Prior to the new tariff regime, the IT giant reportedly shifted inventory from its production facilities in China and India. Although product sales are normally weak at this time of year, Apple’s unexpected logistics drive emphasizes how urgent the situation is. Devices that should endure for several months have now been placed in US warehouses.
According to a senior Indian official who verified the extensive movement, Apple’s goal was to lessen immediate cost constraints because the additional taxes will raise import costs for shipments in the future. Apple is able to maintain its current pricing, at least temporarily, by shipping its goods before the new levy went into effect.
The person claimed that in order to counteract the effects of the new tariffs, the firm will need to think about raising retail pricing in important worldwide regions, even if it currently has no intentions to do so in India or other significant countries. According to the article, Apple is also examining how long it can absorb new expenses without raising prices for customers, particularly in the US where price sensitivity may have an impact on sales.
Furthermore, just the baseline 10% tariff has been implemented thus far. Under the same tariff framework from the Trump administration, the additional taxes will go into effect on April 9. Apple is probably going to review its long-term production roadmap in light of the impending additional prices.
India might have a greater influence on that change. Apple already produces a number of iPhone models and AirPods domestically, and exports have been increasing over the past few years. Under the new policy, Indian goods would pay a lesser rate of 26 percent in taxes than Chinese exports, which will face a hefty 54 percent tariff. Going forward, this 28-point difference might make Indian production more profitable.
With a significant portion of India’s almost $9 billion in shipments to the US, Apple is already one of the leading exporters of smartphones from the nation. According to analysts, Apple’s intentions to diversify its supply chain and lessen its reliance on China may move more quickly as a result of the growing tariff difference between China and India.
As it seeks to mitigate the effects of growing tariffs, the US may increasingly import iPhones from India, according to a Wall Street Journal article. How quickly Apple can increase production in tariff-favored countries like India may have a significant impact on its ability to maintain stable prices without compromising margins.
