5 Aircraft used in just 3 days to avoid the April 5 tariff deadline: In a high-speed logistics operation, Apple reportedly shipped iPhones from India and China to the United States using five full cargo aircraft over just three days in late March. The rush came just before the US enforced a new 10 per cent reciprocal duty on imported goods, part of the Trump-era trade tariffs that took effect on April 5, according to The Times of India.
Warehouses in the US are now stocked with enough devices to last several months, helping Apple avoid price hikes, for now.
Apple's strategy: Beat the tariffs, save on costs
A senior Indian government official confirmed the operation, stating Apple aimed to minimize cost pressure by getting inventory in place before the new tariffs kicked in. This allows Apple to continue selling devices at existing prices in the US temporarily, without raising retail prices due to import costs.
Although Apple has no immediate plans to increase prices in India or other key markets, global pricing may soon change. The company is reportedly assessing how long it can absorb rising costs without passing them on to consumers, especially in price-sensitive regions like the US.
More tariffs incoming: April 9 brings higher duties
While the initial 10 per cent tariff came into force on April 5, steeper tariffs are expected from April 9, escalating pressure on Apple and other tech giants. These upcoming duties could further impact Apple’s cost structure and supply chain decisions, forcing the company to rethink where it manufactures its products.
India gains ground as a key export hub
Apple is now considering India as a more cost-effective manufacturing hub, thanks to lower tariffs compared to China. Under the updated trade policy, Indian-made iPhones face a 26 per cent tariff, while those from China are hit with a massive 54 per cent duty—a 28-point difference that could drive a long-term shift in Apple's production strategy.
India is already a major contributor to Apple’s global exports, especially to the US. The country exported nearly USD 9 billion worth of smartphones to America, with Apple leading the pack.
Analysts say India could replace China in Apple’s supply chain
A recent Wall Street Journal report supports this trend, noting that the US may increasingly source iPhones from India to manage rising tariffs. As Apple looks to maintain pricing without sacrificing profit margins, India's role in its global supply chain may expand even further in the coming months.