Apple Braces for US Tariffs, Airlifts 5 Planes of iPhones from India

Apple has reportedly shipped five cargo planes filled with iPhones manufactured in India to the US amid Donald Trump ’s tariff threat. Its suppliers finished the hurried task in just three days to preempt inventory shortage as American consumers begin panic-buying ahead of the price hike expected after the announced tariffs take effect on April 9.

The Times of India has reported Apple is stockpiling before the orders on tariffs increase by the US president come into effect later this week. The shipments flying to the US warehouses are primarily from India and China — the company’s biggest iPhone producers. Apple airlifted five cargo planes from India in three days, beginning on March 25 — signalling that the company is bracing for the impact of a potential price hike in case it fails to receive exemptions from the US government unlike before. Apple received exemptions on tariffs on products imported from China.

Rushing shipments from its biggest exporters would allow Apple to meet the increase in demand for iPhones caused by the tariffs. It would also give Apple some time to come up with a strategy to navigate the tariffs while keeping the profits nearly intact. Apple’s profit margins on iPhones go as high as 47 per cent, giving it room to absorb the impact. However, if Apple decides to keep the margins, it could pass on the tariff burden to customers, sparking fear around the price hike.

Trump’s tariffs

Earlier this month, Trump announced reciprocal tariffs on nearly every exporter nation, including India. While exports from India to the US will be levied 26 per cent, those from China, where Apple has the largest supply chain, will be taxed 54 per cent. While several countries are reportedly seeking exemptions from the US, companies, such as Apple, are chalking out a plan to reduce the impact as their production lines are located majorly in Asian countries. Experts believe India may emerge as a favourable option against China for iPhone production because of lower reciprocal tariffs. According to a report by The Wall Street Journal, Apple has ramped up iPhone production in India.

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