Report: Apple’s Tariff Strategies Include Importing More iPhones From India
Apple’s plans for dealing with the U.S. tariffs imposed on China — which is at the center of the company’s supply chain — reportedly include sending more iPhones made in India to supply the U.S. market.
The company is doing so because while the tariffs announced by the Trump administration impose a 26% rate on goods from India, they place at least a 54% rate on those from China, The Wall Street Journal (WSJ) reported Monday (April 7), citing unnamed sources.
About 50% of American demand for iPhones could be met with devices made in India, according to the report.
Apple did not immediately reply to PYMNTS’ request for comment.
The company is also attempting to get an exemption from the tariffs, as it did during the first Trump administration, the WSJ report said.
Making the products in the U.S. — which is the stated goal of the new tariffs for all goods — is a “nonstarter” because that would be much more expensive than paying the tariff, per the report.
Bloomberg reported Monday that Apple stocked up on inventory ahead of the tariffs as part of its efforts to prepare for their arrival, which should delay the impact of the tariffs until into the next quarter.
Apple is also likely to squeeze its suppliers and lower its margins in order to keep the prices of its iPhones from soaring, the report said, adding that the company has kept the starting price of its flagship device at $999 since 2017.
In the meantime, consumers’ concerns that tariffs may cause a surge in iPhone prices sent them racing to Apple stores this weekend, leading to crowds like those normally seen during the holiday shopping season, per the report.
Apple was among the companies that took the biggest hits to their stock price on Thursday (April 3), the day after the new tariffs were announced. The drop seen by the company and others like Nike and Wayfair was due to their dependence on imports.
The decline in shares of Apple erased $300 billion from the company’s market cap, largely because of the iPhone maker’s overseas production hubs.
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