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VIRAL
Apple rushed five plane-loads of iPhones from India to the US to avoid new tariffs and is now exploring India as a key manufacturing base.
In the final week of March, Apple transported five full aircraft loaded with iPhones and other products from India to the United States. This urgent move was made to avoid a new 10% import tariff introduced by the US government under President Donald Trump, which came into effect on April 5. According to senior Indian officials who spoke to The Times of India, Apple rushed the shipments to the US to reduce the financial burden of the new tariffs. Despite the changes, the company currently has no plans to increase the prices of its products in India or other markets.
Sources revealed that Apple took quick action by moving stock from its manufacturing hubs in both India and China, even though this time of year is usually quiet for shipments. “Factories in India and China were sending products in advance to the US, anticipating the tariff hike,” a source explained.
Why Did Apple Stockpile iPhones?
By stockpiling inventory before the tariffs kicked in, Apple can temporarily avoid higher costs on newer shipments. This will help the company keep product prices stable for now. Apple's warehouses in the US are reportedly well-stocked for the next few months, which means it won’t need to pass on extra costs to consumers immediately.
However, the source warned that if Apple does decide to raise prices later, it may not only affect US customers, but it could also impact prices in other major markets, including India. Apple is currently studying how different tariff policies from each country will impact its global supply chain and pricing.
India Could Become Apple’s Strongest Manufacturing Hub
The Trump administration also announced another round of reciprocal tariffs, this time 26% set to begin on April 9. These higher tariffs could force Apple to rethink its production strategy, and India might benefit from that change.
Right now, Apple manufactures iPhones and AirPods in India, and exports from India face only a 26% tariff when entering the US, much lower than the 54% imposed on products made in China. This 28% difference gives Apple a strong reason to increase production in India and reduce its reliance on Chinese factories.
Currently, Apple contributes the majority of India’s smartphone exports to the US, which total nearly USD 9 billion. The company is expected to expand its production footprint in India further if the new US tariff rules make Chinese manufacturing less viable.
According to a recent report from The Wall Street Journal, the US may start sourcing even more iPhones from India to reduce the effects of these new trade barriers.
Apple’s quick action to move inventory and its growing interest in Indian manufacturing show how global companies are adapting to rapidly changing trade policies and tariff structures.